Nationwide notes house price drop

26 February 2010

Written by Steve Olejnik

Buy to let landlords may be interested in the latest Nationwide House Price Index, which noted a decrease this month.

Released today (February 26th), the index found a one per cent drop in house prices this month compared with January.

Chief economist for Nationwide Martin Gahbauer said this meant the end of nine consecutive monthly increases.

He added that the average cost of a UK property in February was £161,320.

"There is evidence from a range of indicators that the market may have lost momentum in early 2010 as the stamp duty holiday ended and house hunters were obstructed by the icy weather," Mr Gahbauer predicted.

However, it could be that the rising demand for buy to let property caused the price drop.

Earlier this week the chairman of the Residential Landlord's Association Alan Ward claimed that many more people are turning to renting as a viable financial option.

But Mr Gahbauer predicted that this "pause in the upward trend" could be welcomed by some - particularly first-time buyers.

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