United Kingdom-Property prices fall 2% in February.

UNITED KINGDOM-PROPERTY VALUES DECLINE.

House prices in England and Wales fell by a further 2% during February...

The latest figure pushes the annual rate of decline up to a record high of 16.5%, according to the Land Registry.

Property prices were last seen at this level in September 2004, when the average house price was £153,862.

Despite the gloom, estate agents have confirmed a small increase in the number of potential buyers.

Simon Rubinsohn, chief economist at the Royal Institution of Chartered Surveyors, said: "The increased number of people registering with estate agents are doing more than just window-shopping.

"Figures indicate this more positive trend has further to run over the coming months although activity will still remain at relatively depressed levels."

The North West of the country saw the steepest drops, with property losing 4.1% of its value during February alone.

Meanwhile, the annual rate of house price falls fell the most in the West Midlands at 17.7%.

During the last three months of 2008, just under 39,000 homes were sold, down by 59% compared to the year before.

Despite the downturn, figures from the British Bankers’ Association have shown that the number of mortgages approved has risen for three months running.

However, a full recovery of the housing market is not expected to take place anytime soon.

Howard Archer, chief UK and European economist at IHS Global Insight, said: "While latest mortgage approvals data suggests that housing market activity may have bottomed out, we remain sceptical that sales will pick up substantially any time soon and put a floor under prices."