British house prices declined for the fourth consecutive month in October in the face of subdued lending growth and weak demand, as the economic recovery has not yet started to kick start the property market.
Property prices were down 0.1 percent month-on-month in October, similar to the decline seen in September and August, a monthly survey from property analyst Hometrack showed Monday. On a yearly basis, prices dipped 0.4 percent, the smallest in two years.
Hometrack noted that prices are firming in northern regions and the number of sales agreed saw an increase of 9.2 percent compared to the previous month.
Hometrack's property analyst Richard Donnell says estate agents are likely to continue pushing through as many sales as possible towards the end of the year.
Meanwhile, a report to be released by the Bank of England at 5:30 am ET is expected to show that the number of mortgages approved for house purchases in September rose to 49,000 from 47,700 in August.
Contrasting the findings of Hometrack, a survey conducted by Rightmove has revealed a rebound in house prices in October. Rightmove's survey showed that the average asking prices of a property rose 3.5 percent, marking the biggest rise in eight months.
Donnell said, "The foundation of any national and sustainable recovery in the housing market rests on growth in the wider economy and household incomes."
The economy emerged out of a double-dip recession in the third quarter, underpinned by Olympic ticket sales. Gross domestic product climbed 1 percent from a quarter ago, following three straight terms of contraction.
Bank of England Governor Mervyn King recently said the central bank is ready to add more stimulus if the recent positive signs in the economy fade.
In an interview with Sky News television, BoE Deputy Governor Charles Bean on Sunday warned of a weak economic growth over the fourth quarter and cautioned not to be "overexcited" by the third quarter growth.
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