Prices fall because people cannot afford to buy, not because there are not enough properties on the market or buyers are not interested, explained Paul Holmes, chief executive officer of first-time buyer advice firm Firstrung.
“The reason they can’t buy a property is because the speculative mortgage product has completely disappeared,” he commented.
“They can’t afford to buy because there is no more cheap money available.”
Figures from Nationwide show that house prices fell by one per cent month-on-month in February.
The average price last month was £161,320, compared to £163,481 in January.
It suggested the recent fall is due to the winter weather and expiry of the stamp duty holiday, rather than being the start of a new trend.
More of those who obtained a mortgage last year opted for a variable rate product, hoping to make the most of low interest rates.
