House prices fell for the first time on 10 months during February, according to new figures released today.
The survey, published by Nationwide, suggests that prices dropped by 1 per cent during the month, bringing the average cost of a home down to £161,320. The recent end to the stamp duty holiday, as well as particularly inclement weather, are being blamed for the fall.
Buy-to-let investors looking to grow their portfolio may jump on this as an opportunity to pick up a bargain. But there is no certainty regarding whether or not this downward trend will continue.
The impact of the stamp duty reinstatement is likely to be reduced over time, as buyers factor it into their calculations. Similarly, bad weather cannot last forever.
But there is enduring concern about the slump in mortgage lending. According to the Council of Mortgage Lenders, lending dropped by a massive 32 per cent in January when compared with December. This is likely to be a significant contributing factor to February's low prices, and this may continue for some months yet.
