RICS: Nationwide September house price indices

Commenting on the Nationwide house price index, Simon Rubinsohn, RICS chief economist said: "The latest fall-out in the property market is not altogether surprising given the turmoil in financial markets over the past month. The recent increase in some mortgage rates and the continuing squeeze on the supply of loans suggests that further price falls are likely over the coming months. The prospect of the bail-out in the US being passed by Congress may however gradually enable credit markets to regain some composure. This coupled with the increasing probability of a base rate cut at next weeks MPC meeting should over time lead to a reduction in the cost of borrowing. It is unlikely that this will be of a sufficient magnitude to provide much relief for the housing market at a time when the economic climate is deteriorating and unemployment is beginning to rise sharply."