March 2 (Bloomberg) -- U.K. house prices fell the most since at least 2001 last month as rising unemployment and a dearth of loans discouraged buyers, Hometrack Ltd. said.
The average cost of a home in England and Wales declined 10 percent from a year earlier to 157,000 pounds ($223,000), the London-based property researcher said in a report today. Prices slipped 0.8 percent from a month earlier, led by Wales.
The economy contracted at the sharpest pace since 1980 in the fourth quarter and joblessness rose to a 10-year high in January, intensifying Britain’s yearlong property slump. The Bank of England will probably lower the key interest rate to a record low this week to help the country out of recession.
