UK: House prices fell for the fifth time in six months during February

House prices fell for the fifth time in six months during February as activity in the property market remained subdued, according to figures from the Land Registry.

The average cost of a home in England and Wales dropped by 0.8pc to £162,215 during the month, to stand 1.7pc lower than in February 2010, the registry said.

It was the ninth consecutive month during which the annual rate of house price inflation has fallen, and the second month in a row during which it was negative, while the drop was the largest since October 2009.

The number of homes changing hands also fell to a seven-month low in December, the latest month for which figures are available, with 54,812 transactions taking place – 30pc below the level for February last year, although the decline may in part reflect the severe winter weather during the month.

The data is the latest in a run of gloomy figures on the property market, with Halifax recently reporting that house prices had fallen at their fastest annual rate for 16 months during February, while the number of mortgages being approved for house purchase remain well down on the levels that are consistent with a stable market.

Howard Archer, chief UK and European economist at IHS Global Insight, said: "The fact that house prices dropped for the fifth month in six in February, and by 0.8pc month on month, is fully consistent with our view that house prices will continue to trend down in 2011 after losing ground overall in the latter months of 2010. (read more)