House prices "soften" in February

12 April 2005
House prices fell slightly in February as year-on-year house price inflation rose.

The mix-adjusted average house price in the UK in February 2005 was £179,491, compared with £180,465 in January, the Office of the Deputy Prime Minister's house price index revealed yesterday.

The fall in house prices was witnessed in all types of property except flats, which saw prices grow by 0.2 per cent whilst detached houses fell by 1.2 per cent and semi-detached houses by 0.6 per cent.

Economist Howard Archer of Global Insight attributed the fall to "the overall impression that house prices are fluctuating around a steadily softening trend."

Annual house price inflation, which compares year-on-year house prices still registered an overall increase, however, moving to 10.5 per cent in February from ten per cent in January.

The inflation was particularly marked in London, where it moved from five per cent in January to 7.1 per cent last month.

The fall in house prices may not be good news for sellers, but it certainly brings renewed hope to first-time buyers.

Click here to find out about first-time buyer mortgages.

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