Property prices 'continue to fall'
Economists are divided about the direction of the housing market as Nationwide said prices fell for the second consecutive month during August.The group reported a 0.9% fall to leave the average cost of a home at £169,347.
The latest drop follows a fall of 0.5% in July, and is the first time house prices have dropped for two months in a row since February 2009, according to the Nationwide index.
The annual rate of change also weakened for the fourth consecutive month to stand at 3.9%, the lowest year-on-year rise since November last year.
Economists have also said the housing market may slip into recession again.
Figures from the Bank of England this week showed only 48,722 mortgages were approved for house purchase during July, a level economists consider to be consistent with house price falls.
Forecasters are saying property prices could end the year around 5% lower than they were at the start of 2010. Some economists have said they expect prices to lose 25% of their value by the end of 2012.
But Martin Gahbauer, Nationwide's chief economist, said the recent price falls are "not an unhealthy development" because housing market growth had exceeded that of the wider economy.
He added that with little sign of "distressed selling", the current price declines are likely to remain "relatively modest".
Richard Hatch, of property consultancy Carter Jonas, agreed.
Figures from the Bank of England this week showed only 48,722 mortgages were approved for house purchase during July, a level economists consider to be consistent with house price falls.
Forecasters are saying property prices could end the year around 5% lower than they were at the start of 2010. Some economists have said they expect prices to lose 25% of their value by the end of 2012.
But Martin Gahbauer, Nationwide's chief economist, said the recent price falls are "not an unhealthy development" because housing market growth had exceeded that of the wider economy.
He added that with little sign of "distressed selling", the current price declines are likely to remain "relatively modest".
Richard Hatch, of property consultancy Carter Jonas, agreed.
© 2012 Press Association