House prices in the UK fell for the first time in more than a year

According to Land Registry data, the average residential property dropped 0.2% in value during May, sparking concerns of a second downturn in the housing market.

The South East and London gained 0.9% and 0.7% respectively, however, industrial areas such as North Tyneside and Sheffield suffered declines of up to 1.5%.

Howard Archer of IHS Global Insight said: “Housing market activity remains well below long-term norms despite edging up recently.

“The economic fundamentals of high unemployment, still falling full-time employment and low earnings growth are hardly ideal, a major fiscal squeeze is starting, credit conditions remain tight and house price-to-earnings ratios have moved back up.”