The latest Knight Frank/Markit House price sentiment index (HPSI) shows that house prices fell again in February. Households in all regions of the country reported house price falls, although the magnitude of the declines varied across the country, underlining the 'patchwork' nature of house price movements across the UK. 

Looking ahead, households in six of the 11 regions expect prices to rise slightly or remain broadly stable, while households in the other regions expect to see prices falls.  There are also interesting variations in outlook among different types of households, for example those with mortgages are much more upbeat about the outlook for house prices over the next 12 months than those who own their homes outright, perhaps reflecting the boost given to borrowers by the low base rate.

Those working in the public sector remain more downbeat about house prices than those working in the private sector, a symptom perhaps of the ongoing public sector spending cuts.

To read the report in full. click here