Home prices in the U.K. dropped for the fifth time in six months during February and activity remained low as the housing market struggles to regain traction in the wake of the financial crisis, according to The Daily Telegraph. On Monday, the Land Registry reported that the average cost of a home in the U.K. was 0.8% lower in the second month of the year to £162,215, marking a level 1.7% lower than in February 2010. The fall was the ninth consecutive decline in the annual rate of price inflation, and the largest drop since October 2009.
The data also showed that the number of homes changing hands dropped to a seven-month low during December, with the 54,812 transactions in that month representing 30% less activity than February of 2010. Howard Archer of IHS Global Insight said the data “is fully consistent with our view that house prices will continue to trend down in 2011,” adding his belief that “housing market activity and house prices will remain under pressure for some time,” as austerity measures slow economic growth in the country and hamper consumer confidence.