House prices in England and Wales showed a year on year fall in October for the first time since January, according to a survey released today.
Hometrack, which asks estate agents and surveyors to give achievable selling prices for different types of homes in every post code in England and Wales, said prices were down 0.9 per cent on the month - the biggest monthly drop since January 2009.
The monthly figures are not adjusted to take account of seasonal trends in the housing market.
The average house price in England Wales has now fallen for four consecutive months to stand at £156,200, the lowest since September 2009.
The figures concur with other housing market surveys showing a broad slowdown in activity and prices. Analysts expect a further decline ahead as the economy slows into next year when hefty government spending cuts and tax rises start to bite.
"Further price falls are inevitable in the run up to Christmas and are likely to continue to fall into the first half of 2011," said Hometrack's director of research Richard Donnell.
"A stand off is beginning to emerge between buyers waiting for prices to fall further and sellers being unrealistic on the price they're willing to accept."
Donnell said there had been a 14 percent increase in homes coming onto the market in the last six months while demand had fallen 8 percent.
Hometrack's survey covered more than 5,100 estate agents and surveyors.
Reuters