UK Daily View: FT index confirms house price slowdown

Norma Cohen explains why the drop in prices is more modest than those recorded by other surveys
Some quarters welcome the measures proposed by the government to stimulate the housing market but these still stop short of the drastic action demanded by the industry
Complaints about the growing number of companies that buy poor people’s homes at a discount and then rent them back have triggered an inquiry by the Office of Fair Trading amid concerns about an industry that has expanded rapidly in the fallout from the credit crunch
Caroline Flint raised the spectre of a property crash when her briefing papers, describing a price fall of 5-10% as a best-case scenario, were captured on camera
Redrow blamed trading conditions and the reduced availability of mortgages for deterioration in the housing market
A growing belief that UK property prices are falling is deterring both sellers and buyers, leaving housing-market conditions at their loosest since the mid-1990s, says a survey
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Norma Cohen explains why the drop in prices is more modest than those recorded by other surveys

Nationwide’s data show a sixth consecutive monthly decline, but Chris Giles explains why the situation differs from the late 1980s

Martin Wolf discusses the Bank of England’s response to the credit crisis and the state of the UK economy
The latest taxpayer-funded scheme to let banks rebuild their balance sheets will do little to restore fair value to equity or mortgage markets. The only compensation for borrowers - who get no state help - might be to cash in on banks’ profits

John Authers says if UK home prices fall, the pound sterling will suffer the fate of the dollar

British banks are not the only ones worrying that the UK mortgage market has seized up. The country’s housebuilders are next in line to suffer if a way cannot be found to break the lending logjam