Nationwide Says U.K. House Prices Won’t Recover Until 2010

Nationwide Building Society, the U.K.’s biggest customer-owned lender, said U.K. house prices may keep falling for the rest of this year as more Britons lose their jobs.

The U.K. economy will remain in recession for the remainder of 2009 and any recovery next year will be “sluggish,” the Swindon, England-based company said today in a statement. Unemployment may continue to rise next year because the labor market will lag behind developments in the rest of the economy.

“I don’t think the fall in house price is over yet and will probably continue for the remainder of 2009 at least,” Finance Director Mark Rennison said on a conference call with reporters.

Source: Bloomberg

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