house prices down again

Prices are down for the fourth month in a row
House prices fell in February by 0.5%, says the latest survey from Nationwide.
The fourth consecutive monthly fall in property prices pushed the cost of the average UK home down to £179,358.

The annual rate of house price inflation fell from 4.2% in January to 2.7% in February, the lowest since November 2005.

But the building society warned against gloomy predictions for the housing market, claiming that recession was “a remote risk for the UK economy”.

“It should not be surprising that we are entering a slower phase,” said the Nationwide’s chief economist Fionnuala Earley.

“It is encouraging that the outlook is one of just that, slower economic growth rather than recession,” she added.

Trend continues

It is the first time since 2000 that the Nationwide has recorded four monthly price falls in a row and the pace of decline seems to be speeding up.