House prices fell by 0.1% in February, according to the latest figures from the UK’s largest building society, as a slowdown in activity continued to draw the heat from the market.
But separate figures from the Bank of England showed mortgage approvals rose for the second consecutive month in January, prompting some experts to predict house prices will start rising again soon.
The Nationwide report showed the annual rate of price inflation fell for the sixth month running to stand at 5.7% – less than half the 11.8% rate in June 2014 and its lowest level for 16 months.
The average price of a UK home has fallen back to £187,964, from the recent peak of £189,306 in August.
Nationwide’s figures, which are based on home loans it has approved during the month and adjusted to reflect the makeup of a typical house, are the first to show prices for February.
They are in line with other indicators, which have shown falling interest from buyers and a change of mood from a year ago when prices in London and south-east England were spiralling upwards.
