House prices in England and Wales fell for the first time in over two years in the three months to February, as the spectre of war in the Middle East kept potential buyers out of the market. The Royal Institute of Chartered Surveyors' (RICS) latest housing market survey's net prices balance stood at -10pc at the end of February - its worst level since 1995 - after suffering its biggest monthly fall since 1979.
"Given the strong possibility of war in Iraq, an increasing number of potential homebuyers have decided to take a wait-and-see approach for the time being," RICS said. The weakness of the UK economy was another factor behind the "faltering" housing market. "This latest survey shows that one of the last bastions of economic endurance is simply no longer able to sustain its unprecedented growth in the face of a looming war and the economic uncertainty it has brought about," said RICS. //www.fxcentre.com