Houses prices fall

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The price of property in the UK has continued to fall this month, according to new figures.

Nationwide's research found that the cost of a home has fallen by 1.9 per cent from last month, with the average house now costing buyers around £164,654.

The changes in the prices equated to a fall of 10.5 per cent over the past 12 months.

Fionnuala Earley, chief economist of Nationwide, said that the study also found that fixed rate mortgages have grown in popularity.

"Among the fixed rate loans available, borrowers seem to be keeping true to their word and opting for longer term fixed rate loans," she explained.

"Two and three year fixed rates have historically been more popular with house buyers and remortgagers respectively, but in both cases five and ten year fixed rate loans have become more popular this year."

Alliance & Leicester recently announced that it was cutting the interest rates on a number of its mortgage products.

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