Pound stumbles as UK house prices slip

<p>The pound has depreciated on news UK house prices dipped last year.</p>

The pound has stumbled in forex markets this morning (January 3rd) after one building society reported UK house prices dipped last year.

According to Nationwide, the value of property over 2012 fell by one per cent, while it does not anticipate there to be much change in 2013.

The organisation revealed that a typical UK house was valued at £162,262 at the end of last year, after prices decreased by 0.1 per cent in December.

This one per cent fall rubbed out the one per cent price increase recorded in 2011.

Nationwide reported that buyers are still apprehensive about the economy and a lack of mortgage availability meant the property market remained stiff last year.

Chief economist at the building society Robert Gardner commented:
"The uncertain outlook for the wider economy is … likely to have kept many potential buyers on the sidelines, unwilling to make a major financial commitment until they feel more optimistic."

At 10:45 GMT, the pound slipped by 0.3 per cent versus the dollar to £1 buying $1.620, while it rose by 0.3 per cent against the euro to €1.236.

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