Home prices fall for second month

UK house prices fell for a second consecutive month in December, the Nationwide building society says.

Prices dropped 0.5% in December after slipping 0.8% in November, but property prices were still up 4.8% year-on-year from December 2006, it said.

The average price of a Stratford Property rose by £8,334 over the year, putting it at £182,080 at the end of 2007.

Nationwide said that this month's interest rate cut should help the market recover somewhat later in 2008.

"The housing market has weakened significantly in the closing months of 2007 after holding up more strongly than expected in the earlier part of the year," said Fionnuala Earley, Nationwide's chief economist.

Rankings

Nationwide data also showed that St Albans was the most expensive place to buy property in a survey of 30 towns and cities.

The average house price in the Hertfordshire town rose 13% to £347,563 over the year.Belfast saw the biggest rise in house prices, up 32% over the year to £306,698 - an increase of £201 a day.Durham and Newcastle saw the survey's only fall in house prices.

Average prices fell 3% in both places to £152,902 and £178,309 respectively.