House prices fall in February

28.02.2006

House prices fell in February, according to new data, casting doubt on the recent strength of the housing market.

Figures out by Nationwide building society show that prices fell 0.2% in February, compared with a 1.5% rise in January.

This brings the annual rise to 3.7% compared to 4.4% the month before and the average price of a home in the UK to £158,573.

But the report emphasised that the trend over the last 6 months was still strong, making "interest rate cuts less likely in the short term."

"Traditionally buyers return back into the market in the spring but weak economic factors make this look less likely this year," said the Nationwide report.

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