House prices fell by 1.8% during February to £147,746, according to the Nationwide Building Society.
The average price is now £31,612 lower than February 2008, a drop of 17.6%.
Prices may decline further
Nationwide reported anecdotal evidence from estate agents on a pick-up in interest from potential buyers, due to falling prices and low interest rates, providing cause for cautious optimism among sellers.
But the figures showed that any increased interest from buyers has not yet filtered through enough to slow the fall in prices, according to Fionnuala Earley, Nationwide’s chief economist.
Howard Archer, chief UK and European economist at IHS Global Insight, said: ‘This [1.8% fall] reinforces our belief that house prices still have substantially further to drop.’
Advice for buyers & sellers
Whether you’re trying to get the best price for your current house or a buyer looking for a bargain, check out the Which? guide to buying and selling property in a falling market. For those looking to improve rather than move, we also have guides on renovating and maintaining your home.
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