Fall in house prices across most UK regions

Posted on March 29th, 2011 | Categories - House Prices

The value of UK homes fell over the course of the last 12 months but some regions did experience a slight rise.

London property prices increased this year although month-on-month figures show a decline from January’s records.

Average house prices in England and Wales fell in February despite a rise in the value of homes in London and the East of England, according to figures revealed by the Land Registry.

The average value of homes in England and Wales dropped to £162,215 in the year to February, marking a 1.7% fall. However, house prices in the capital and the East of England rose by 3.2% and 1% respectively.

Overall house prices fell by 0.8% between the months of January and February.

The body also found that the value of detached homes fell by 0.3%, semi-detached properties fell by 1.6% and terraced homes dropped by 2.7%. The price of flats and maisonettes also saw a 2.2% fall.

The biggest fall was recorded in the north-east of England where the value of homes dropped by 7.1%. The month-on-month figures also highlighted a 4% fall between January and February.

Although London experienced the largest annual rise, property prices did fall by 0.5% in February compared with January.

Earlier this month the Council of Mortgage Lenders (CML) issued a report outlining the sluggish state of mortgage lending amongst high street banks, which is effectively pushing down prices.

Bob Pannell, chief economist at CML, said the council still has an “underlying view that this is going to be a challenging year for households” adding that the housing market “remains stuck in a rut”.