Hometrack's December survey has shown that, for the sixth month in a row, house prices have fallen. The average price of a house is now £163,700, down by 0.8%.
In June, the average price of a house peaked at £167,700. Hometrack's has said that it expects prices to fall further during the first quarter of 2005 by up to 3%.
Our view
Bank of England interest rate increases appear to be working. For how long though? We have a sneaking feeling that confidence is starting to trickle back into the property market.