Nationwide Building Society has announced that the average price of a house in the UK dropped by 1.8 percent in February.
House prices have continued falling in the UK as the difficulties in the property market continue, the latest figures from Nationwide Building Society have revealed.
According to the firm, the average house dropped by 1.8 percent in value in February and by 17.6 percent compared with 12 months before. This leaves the cost of the average home at £147,746, down from £179,358 in February 2007.
The Bank of England's base rate cuts have failed to halt the decline or boost sales, according to Nationwide's chief economist Fionnuala Earley, but have "helped affordability". She added: "Early signs of increased interest in housing, as reported by the pick-up in new buyer enquiries, have yet to filter into sales, but do suggest that falling prices and interest rates are raising curiosity now, which could flow through quickly once confidence returns."
Interest rates could fall again next month when the Bank's Monetary Policy Committee meets to decide whether to adjust the base rate, which is currently at a record low of one percent following successive cuts from October. Ms Earley has joined other analysts in predicting a further fall, pointing to a recent comment by Bank governor Mervyn King who said that "further easing [of the rate] may well be required".
