British house prices fell for a third consecutive month in January to post the lowest annual rate of inflation in more than two years, the Nationwide building society said today.
Nationwide said house prices fell 0.1 per cent on the month in January, against a 0.4 per cent decline in December and less than analysts' forecasts for a 0.3 per cent fall.
But that still took annual house price inflation down to 4.2 per cent from 4.8 per cent in December, the lowest rate since December 2005. The average house price fell to £180,473 (€242,714) from £182,080.
Prices were 0.3 per cent down in the three months to January compared with the previous three months, falling from a 0.9 per cent increase in December.
The figures add to evidence of a cooling housing market and are likely to reinforce expectations that the Bank of England will cut interest rates next week from 5.5 per cent.
Mortgage approvals data from the Bank of England yesterday came in weaker than expected to post their lowest reading since the current series began in 1999.