House prices fell further in May

House prices fell further during May after all but the top end of the market experienced weaker activity, the Land Registry said yesterday.

The average cost of a home in England and Wales dropped by 0.4 per cent in May to £161,823 – 2.2 per cent lower than a year ago. Housing activity also slowed sharply, with the number of transactions down by 13 per cent to 44,803 in March, the latest figures available, from 51,399 a year ago.

The May decline was the seventh month out of the past nine that prices have fallen, with the average price now down 3 per cent from its peak in August. London is the one place bucking the trend, with prices rising by 2.9 per cent over the past 12 months, though over the month, the East Midlands also saw prices pick up slightly.