House prices fall for first time since May 2005

But despite this fall, Martin Ellis, chief economist, says prices have increased by 1.6% over the past three months as the market has strengthened. He states a mixed pattern of monthly price rises and falls is a typical feature of a slow housing market, pointing out that last year, for example, there were three monthly falls. Meanwhile, on an annual basis house price inflation is unchanged at 5.1% from December and is significantly below the 13.7% annual growth rate recorded in January 2005. Ellis says the market is expected to be flat in 2006 with modest nominal house price growth an...