Annual house price inflation in England and Wales fell in January to its lowest since December 2005, a survey showed today.
The average asking price for homes fell 0.8 per cent in January, reducing the annual rate of increase to 3.4 per cent from 4.8 per cent in December, the survey by property website Rightmove showed.
The monthly figures are not adjusted to take into account seasonal factors.
This was the third consecutive monthly fall, but Rightmove said there was evidence of an increase in activity immediately after the New Year, with the number of visits to its website up nearly 20 per cent from the first two weeks of last year.
It said much of the monthly price fall was due to the final deadline for sellers to provide Home Information Packs for smaller homes, however, attracting more cheap properties to the market.
The survey noted the sector would benefit from further expected interest rate cuts and continued action by the banking sector to improve liquidity.