February brings decline in property prices

Property prices have declined by one per cent in February, according to a recent report.

Data published by the Nationwide building society revealed the month-on-month decline and said it could be attributed to decreased activity in the housing market as a result of the snowy weather.

The firm also said that the expiry of stamp duty on January 1st, which caused a rush of December sales, could also still be having an effect on activity levels.

However, the organisation also claimed that it is still "too early" to say whether the decline is the start of a new trend in lower house prices.

Martin Gahbauer, Nationwide's chief economist, said: "Judging from the fall in retail sales during January, however, the housing market does not appear to be the only sector of the economy to have experienced a setback related to adverse weather and the expiry of economic stimulus measures.

"At this stage, it is difficult to gauge how much of the drop in housing activity is attributable to one-off factors and therefore whether February's fall in prices is just a temporary blip or the start of a new trend."

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