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House prices 'down in February'

26/02/2010

The month of February has seen an end to the nine consecutive months of house price increases, according to new figures from Nationwide.

Prices fell by a seasonally-adjusted one per cent this month, the lender noted, attributing the decline to poor weather and the end of the stamp duty holiday.

"Judging from the fall in retail sales during January, however, the housing market does not appear to be the only sector of the economy to have experienced a setback related to adverse weather and the expiry of economic stimulus measures," a Nationwide statement asserted.

The financial firm added that it is still to too soon to tell if the fall in prices was a one-off that could be blamed on external factors, but pointed out that it would have been "surprising" to see the "very strong" increase in house prices noted last year continue over a long period of time.

It added that the slight dip in prices may also spell good news for first-time buyers, as it could keep properties more affordable for those who have not previously had a mortgages.

Dianne Paterson, a property partner at Scottish legal firm Russel + Aitken commented that property prices north of the border are likely to remain "steady" throughout the next year.
 

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