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| Property prices fall in February | Property prices fall in February |
| (40 minutes later) | |
| House prices fell in February by 0.5%, says the latest survey from Nationwide. | House prices fell in February by 0.5%, says the latest survey from Nationwide. |
| The fourth consecutive monthly fall in property prices puts the cost of the average UK home at £179,358. | The fourth consecutive monthly fall in property prices puts the cost of the average UK home at £179,358. |
| The annual rate of house price inflation fell from 4.2% in January to 2.7% in February, the lowest since November 2005. | The annual rate of house price inflation fell from 4.2% in January to 2.7% in February, the lowest since November 2005. |
| But the building society warned against gloomy predictions for the housing market, claiming that recession was "a remote risk for the UK economy". | But the building society warned against gloomy predictions for the housing market, claiming that recession was "a remote risk for the UK economy". |
| Trend continues | Trend continues |
| Nationwide said prices in the December to February period were down 1% from the previous three months. This was a steeper decline than the previous three-month on three-month figure of -0.4%. | |
| Various surveys have charted a decline in the housing market since last summer, with the Land Registry the latest to show a slowing in the annual rate of house price inflation. | Various surveys have charted a decline in the housing market since last summer, with the Land Registry the latest to show a slowing in the annual rate of house price inflation. |
| While Nationwide said the trend was of weakening prices, if added that the drop in the annual rate of increase overstated the overall situation. This was because house price growth was particularly strong in January and February last year. | |
| The housing market has seen a sharp slowdown since the summer | The housing market has seen a sharp slowdown since the summer |
| Higher energy bills and food costs have put more pressure on household finances. | Higher energy bills and food costs have put more pressure on household finances. |
| Meanwhile lenders have become more fussy about who they lend to because of the crisis in the banking industry. | Meanwhile lenders have become more fussy about who they lend to because of the crisis in the banking industry. |
| No more so-called 125% mortgages are available and the 100% mortgage market has shrunk significantly in recent months. | No more so-called 125% mortgages are available and the 100% mortgage market has shrunk significantly in recent months. |
| The Bank of England's Monetary Policy Committee cut interest rates from 5.5% to 5.25% in February. | The Bank of England's Monetary Policy Committee cut interest rates from 5.5% to 5.25% in February. |
| 'Uncertain market' | 'Uncertain market' |
| Aggressive rate cuts in the coming months were unlikely, according to Nationwide's chief economist Fionnuala Earley, but the economy was much weaker than it was a year ago. | Aggressive rate cuts in the coming months were unlikely, according to Nationwide's chief economist Fionnuala Earley, but the economy was much weaker than it was a year ago. |
| "It should not be surprising that we are entering a slower phase," she said. | "It should not be surprising that we are entering a slower phase," she said. |
| "It is encouraging that the outlook is one of just that, slower economic growth rather than recession." | "It is encouraging that the outlook is one of just that, slower economic growth rather than recession." |
| She added that the reluctance of buyers given the current uncertainty in the market was not a surprise, but conditions for the UK housing market were "perhaps less gloomy than some would have us believe." | She added that the reluctance of buyers given the current uncertainty in the market was not a surprise, but conditions for the UK housing market were "perhaps less gloomy than some would have us believe." |