U.K. DCLG House Price Drop the Most Since 2000

The U.K. DCLG house price index recorded a 12.3% annual decline in February, which is the weakest reading since comparable records began in 2000, and compares to an 11.5% drop in January. Although the report is considered to be lagging indicator, the DCLG report confirms the downward trend seen in the U.K property market during February, and the data suggests that the collapse in the housing may continue as credit conditions remain far from normal. Meanwhile, a separate report from the Royal Institution of Chartered Surveyors showed U.K. house prices continue to fall in March, but has moderated to -73% from -78% in the previous month, which is the slowest pace of growth since February 2008. The data was in-line with the Nationwide house price indicator released earlier this month, which suggested that the pace of price deterioration is slowing, and the report foreshadows an improved outlook for the DCLG’s measure for home prices in March.