House prices resume their downward trend

The average home lost 0.2% of its value last month, according to Nationwide Building Society’s house price index.

Prices are down by 1.3% on the same month last year, although the monthly fall comes after two consecutive months of price increases.

Robert Gardner, Nationwide’s chief economist, said: “Since November 2010 house prices have increased in three months and fallen in three months. However, it is not unusual to see a pattern of modest monthly increases and decreases when the market is fairly static, as has been the case since last summer.

“There is still little evidence to suggest that price declines will accelerate in the months ahead.”