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House prices take a tumble

House prices take a tumble

Category: Mortgages

Updated: 06/04/2011
First Published: 28/03/2011

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

House prices in England and Wales continued to struggle in February, as the average price of a property fell by 0.8%.

It means that over the 12 months to February, prices fell by 1.7%, with the average house being sold for £162,215, according to Land Registry data.

The annual change has now been negative for two months in succession, and is the largest yearly fall recorded since October 2009.

The amount of houses being sold also appears to be on the wane, with sales averaging 56,257 per month from September to December 2010.

This represents a fall from an average of 65,939 for the same period 12 months previously.

As has become common, house prices in London show markedly different trends to the rest of the country.

There was an annual rise in prices of 3.2% in the capital last month, far higher than any other region in England or Wales.

In fact, just one other region recorded a yearly rise in February, with the East delivering a far more modest 1.0% improvement.

The yearly increase in London comes despite a 0.5% monthly fall in February, taking the average property price to £341,048.

Just two regions saw house prices trend upwards last month, with the East and the North West seeing values rise by 1.2% and 0.6% respectively.

The North East saw the heaviest falls, as prices declined by 4.0%, meaning the value of property in the region has dipped by 7.1% in the last 12 months – comfortably the steepest drop in all regions.

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