Property data firm Hometrack said that the fall in house prices in England and Wales accelerated in October 2011 as consumers become increasingly worried about the outlook for the economy and shy away from buying homes.

Hometrack said that average prices dipped 0.2% MoM as compared to falls of 0.1% in each of the five preceding months. House prices were 2.8% below the October 2010 level.

Mr Richard Donnell director of research at Hometrack said that "Growing consumer concern over the outlook for the economy is beginning to impact directly on house prices."

As in previous releases, the survey showed large regional differences, although prices stalled even in London after rising for seven months in a row.

Mr Donnell said that "The evidence is clear that buyers are drifting away from the market in the face of weak consumer confidence and concerns over the prospects for the economy and their household finances."

Hometrack said that while demand eased, supply had grown by 11% over the past six months.

Mr Donnell said that "The balance between supply and demand is clearly shifting and points to an acceleration in price falls in the coming months."

(Sourced from www.reuters.com)