UK house prices declined for a second month in January

London - UK house prices fell for a second month in January and potential sellers are hesitating to list their properties.

Halifax said values fell 0.6% after a 0.8% drop in December. That took the annual rate of change over the past three months down to 2.2%, the weakest since July.

Amid uncertainty about the strength of housing demand, Wednesday’s property report also showed that home owners are becoming more nervous about trying to sell.

New instructions fell for a 23rd consecutive month in January, the worst sequence for almost eight years.

The UK housing market cooled last year as economic growth lost momentum, with London a particular weak spot. There is support for values because of the shortage of homes for sale, however.

A report from Nationwide Building Society last week showed prices rose in January as the supply-demand imbalance offset the underlying slowdown.

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