Nationwide reports fall in house prices

UK house prices have fallen for the first time since the second quarter of 2009, it has been reported.

Latest figures from Nationwide indicate that prices fell by one per cent during February after nine consecutive monthly rises.

This decline was the most noticeable since February 2009, when a 1.5 per cent month-on-month fall was witnessed.

According to Nationwide, the average UK house price now stands at £161,320.

Martin Gahbauer, the bank'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."

First-time buyers may hope a fall in house prices, aligned with the availability of cheap mortgage deals, helps them establish a foothold on the housing ladder.

However, Timothy Lambert, head of consulting at Ducalian, recently claimed that the mortgage market will take some time to recover.

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2010-03-01 13:04:37 © Moneyextra.com