Mar 5, 2010 - 16:08

Drop in UK house prices during February

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According to the last property index report from Halifax in the UK residential property there saw an unexpected price fall of 1.5% in February. The decrease has been the first drop in UK residential house prices since June last year. The decline followed a downwardly revised 0.4% rise in January and left prices 4.5% higher in the three months to February compared with a year ago.

Commenting on the drop, Halifax's housing economist Martin Ellis said; 'the bad weather in the first two months of 2010, together with the return of the lowest stamp duty threshold to £125,000, are likely to have had an adverse impact on housing demand'.

Along with the latest Halifax report The UK Nationwide building society also reported a 1% fall in prices last month and Bank of England figures showed mortgage approvals fell to an 8 month low in January.