House prices fall in February

UK house prices saw a fall in February, despite the fact that people are more confident regarding the UK property market thanks to a continued low level of the Bank of England's base rates.

According to the latest report from Knight Frank, house prices across the market for properties for sale have seen a fall in February. This represents the 20th consecutive month in which house prices have dropped, according to the estate agents.

It said that every region in the UK has reported falling prices over the last month.

Throughout the UK, Knight Frank discovered that just 6 per cent of homeowners felt that their property had increased in value over the last month. This was compared to the 20 per cent who perceived their home to have fallen in value over the same period.

The worst areas for falling prices were Wales and Yorkshire, while London, unsurprisingly, saw the lowest rate of decline during the month.

However, Knight Frank also reported that the average mortgage borrower now has an increased confidence in the price of properties going higher this year, thanks to the continued low rate of the Bank of England's interest rate.

Gráinne Gilmore, head of UK residential research at Knight Frank, said: "The current and upcoming public sector spending cuts seem to be taking their toll on workers in the sector, who remain much more downbeat about future house prices than their counterparts in the private sector.

"One bright spot for homeowners throughout the economic turbulence has been the record-low base rate."

Earlier this month, the Halifax reported that the UK consumer in general is expecting to see an improvement in the housing market this year.

The survey from Halifax found that 29 per cent of Brits expect to see house prices rise this year across the country, while only 22 per cent anticipate them to drop.