Reduction in House Prices

House prices across the UK have fallen for the sixth month in a row, figures have shown.

March saw prices continue on their downward spiral, falling by 0.2% during the month, with 29% postcode districts seeing a reduction in house prices.

And the average cost of homes in England and Wales rose by just 0.4% during the past year to average £174,100, according to property information group Hometrack.

The survey comes days after Nationwide Building Society said house prices fell for the fifth month in a row in March, dropping by 0.6%, while annual house price growth eased to just 1.1%, its slowest rate for 12 years as a result of stretched affordability and the credit crunch.

Richard Donnell, director of research at Hometrack, said: "Some bounce-back in market activity was inevitable after what has been a prolonged period of weak market activity. However the growth in demand over the last two months is only a third of the level seen in previous years so the spring market is likely to be a non event this year. Continued uncertainty in the financial markets, affordability pressures and weak buyer confidence are all likely to suppress levels of market activity in the months ahead with pricing levels remaining under pressure."

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Philip Bullivant from law firm Irwin Mitchell said: "The reduction in availability of mortgage products particularly at the adverse end of the market will inevitably feed into the housing chain and ultimately result in sellers being obliged to be realistic about sale prices."