By AFP | Mar 4, 2010

British house prices show first drop for eight months: data

British house prices fell in February for the first time in eight months as property supply rose and cold weather kept buyers away, data from a leading home-loans provider showed on Thursday.

Prices dropped 1.5 percent in February compared with January, also as the government reintroduced a sales tax on cheaper properties, Halifax said in its latest survey.

"House prices fell by 1.5 percent in February, the first decline since June 2009 following seven consecutive monthly increases," said Halifax's housing economist Martin Ellis.

"Despite this fall, the average price is 8.0 percent above the trough reached in April 2009." Ellis added: "An increase in the number of properties available for sale has helped to reduce slightly the imbalance between supply and demand.

"Halifax, part of state-controlled Lloyds Banking Group (LBG), said the average house price in Britain stands at 166,587 pounds (183,589 euros, 250,786 dollars).