The fall in prices means annual house price growth slowed to 3.7% in the year to May from 4.9% in the year to April. The data was released Tuesday by the Department for Communities and Local Government.
The fall in house price growth was not reflected in London, where house prices grew by 7.8% in the year to May, up from 7.5% in April.
By country, annual house price growth was highest in Scotland at 6.9%, followed by England at 3.8% and Wales at 1.5%. House prices fell by 7.8% in Northern Ireland over the year.
Separately, the Council of Mortgage Lenders said mortgage approvals for home buyers in May fell by 44% from the same month a year ago.
CML director general Michael Coogan said: "Lending levels continue to be lower than last year and any recovery is still some way away, with little sign of the special liquidity scheme increasing the flow of funds to the industry or lowering the cost of funds as hoped."
Source:http://uk.biz.yahoo.com/080708/214/i2x09.html
