UK house prices fell in February for the fourth month in a row, according to a survey from Nationwide.
The price of a typical house fell by 0.5 per cent during February, with the annual rate of house price growth declining to 2.7 per cent.
The building society said this brings the annual rate of house price inflation to its lowest since November 2005.
An average property now costs £179,358 from £180,473 in January.
Nationwide’s chief economist, Fionnuala Earley, said: “The softening in UK house prices in February is not unexpected given the weakening trend in other housing market demand indicators.
“House purchase approvals have been falling back sharply since the autumn and the upturn in interest from new home buyers at estate agents seen in the final two months of 2007 fell back again in January.
“Overall, it seems clear that we will not see recent rates of growth, in either the UK economy or housing market, repeated for some time.”
The Nationwide house price survey is based on agreed mortgages in the UK.
The Land Registry, which reported house price figures for January yesterday, also confirmed a downward trend.
The data, which is based on completed sales in England and Wales, show a continued decline in annual house price change from 6.7 per cent in December to 6.4 per in January, although the average house price rose 0.9 per cent in January.
One Comment
Good news for all those aspiring to own their own home to live in. Expect a fight back by estate agents, lenders and all the others with a vested interest.
As for the Land |Registry figures they are out of date and the selling prices will include incentives on new homes such as deposits paid,legal fees and new upmarket kitchens and floor coverings. We are in for an interesting time