 UK housing market: A national obsession |
UK house prices in February rose at their slowest rate for more than a year, according to the Nationwide building society. House prices rose by on average 0.4% during the month, the slowest rate recorded by the lender since October 2001.
The survey contradicts recent findings by rival Halifax bank, which reported high demand for property in February, with prices rising by an average of 1.7%.
 It is still too early to say this is definitely the start of a sustained slowdown.  Alex Bannister, Nationwide |
On Monday, the International Monetary Fund expressed concern over the UK housing market, warning the UK could be heading for a dangerous house price bubble.
False sunset
The annual rate of house price inflation fell to 24.8% - the slowest since October 2002 - from 26.5% in January.
But the building society's group economist, Alex Bannister, said February's figures might not indicate a long-term slowdown in the market.
"It is still too early to say this is definitely the start of a sustained slowdown.
"Over the last few years there have been three false sunsets for the housing market. Each false sunset has seen consumer confidence and survey information turn significantly negative, but none led to a sustained slowdown."
The Bank of England's Monetary Policy Committee, which sets interest rates, meets this week.
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