Property prices fall for fifth consecutive month

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by Kay Murchie

According to Hometrack, the housing intelligence business, their latest survey has established that property prices in England and Wales have fallen for a fifth consecutive month in February.

In February overall, the survey showed average property prices were down 0.2%, with the annual rate of growth falling to 1.4%, the lowest level since April 2006

The largest falls, at 0.3%, were recorded in the East Midlands and the South-West.

In spite of the fall, there was a 7.9% rise in new buyer registrations, indicating an increase in demand. The largest increase in demand was noted in London where new buyer registrations increased by 13%.

Richard Donnell of Hometrack said in the wake of the credit crunch, demand for housing fell by 45%, but our most recent survey shows a small, but important, turnaround in demand over February.

The modest increase in new buyer registrations is evidence of firming demand, largely on the back of recent interest rate cuts, added Mr Donnell.

Mr Donnell concluded that he believes the worst of the housing market may be over, with a fillip in the next few months.

In the last 3 months, the Bank of England has cut rates twice bringing them down to 5.25%.

In related news, the National Association of Estate Agents (NAEA) said there is renewed optimism in the UK property market. Stewart Lilly, NAEA’s president, said it is very encouraging to see the New Year start optimistically as buyers and sellers make a welcome return back to the market.