UK house prices fall for first time in ten months
UK house prices fall for first time in ten months
Friday 26th February 2010
House prices in the UK fell in February, ending a nine month run of consecutive rises, according to a new survey.The monthly figures by Nationwide revealed that house prices fell by one per cent from their levels in the previous month.
The decline is the sharpest the market has seen since February 2009 which saw a 1.5 per cent fall month-on-month.
However, over a three month period, from December 2009 to February, there was a 1.6 per cent rise in prices. Despite this being down from the two per cent reported in January the annual price inflation increased from 8.6 per cent to 9.2 per cent year-on-year.
The average house price in the UK now stands at £161,320 and Nationwide have suggested the fall in prices may have been the result of unique factors including the extreme winter weather experienced around the country and the expiry date of holiday stamp duty.
Martin Gahbauer, Nationwide's chief economist, said: "It is difficult to gauge how much of the drop in housing activity is attributable to one-off factors and, therefore, whether February's fall in prices is just a temporary blip or the start of a new trend."
He added there was evidence from a range of indicators that the housing market may have lost momentum in early 2010. New buyer inquiries fell sharply in the new year and there was an associated fall in mortgages taken out.
"This drop in demand seems to have fed into agreed prices during February," Mr Gahbauer said.
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