Data from the Land Registry and the Nationwide confirms negative trend

House prices fell by 0.2% in September, according to the latest data from the Land Registry.

The government office said the change takes the average UK property price to 拢166.769, with the West Midalnds experiencing the greatest monthly fall, of -1.4%. The average twelve-month increase in prices has now fallen back to 5.2%.

Land Registry data is the most reliable record of changes in house prices, albeit reporting slightly later than data from mortgage lenders.

The news came as the Nationwide reported a price fall of 0.7% in October, bringing the average price down to 拢164,381 and making the annual rise just 1.4%.

Martin Gahbauer, Nationwide鈥檚 chief economist, said the three month on three month rate of change 鈥� a smoother indicator of the recent price trend 鈥� fell to -1.5% in October from -1.0 % in September, the largest decline over three months since April 2009.

However, this is still well below the 5-6% rates of decline on the three month measure seen during the second half of 2008. He said: 鈥淚f the recent trend in house prices were to continue through November and December, the annual rate of house price inflation would drop to between 0% and -1% by the end of 2010. This would compare to a rate of +5.9% at the end of 2009.鈥�

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