UK house prices fell by 0.2 per cent in April according to the latest FT/Acadametrics House price index, while the March figure was revised downward to show a 0.2 per cent fall in the first back-to-back monthly reading of falling house prices since April 1995.

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Norma Cohen explains why the drop in prices is less severe than those recorded by other surveys

The drop in prices, although more modest than those recorded by other surveys, lends further evidence to what is now widely expected to be a trend for 2008; falling housing values.

Peter Williams, chairman of Acadametrics, said the slightly more temperate drop in house prices recorded by the FT Index simply reflects the fact that other widely followed indices are based on mortgage data and will include transactions that never complete. The FT survey is based on completed transactions, adjusted to reflect the nation’s mix of housing stock, and therefore lags the trend seen in surveys such as those conducted by Halifax and Nationwide. It also includes house purchases that did not require a mortgage.

Nevertheless, Mr Williams said, all the surveys are now conclusively pointing towards a weakening housing market for 2008.

On an annualised basis, house price inflation is still rising. Year on year, house prices gained 4.1 per cent April, the lowest rate since February 2006.

The latest report showing house price falls came as fresh figures from the government showed that the number of repossessions jumped to a 15-year high. The Ministry of Justice said the number of court orders allowing landlords to repossess homes jumped 17 per cent in the first quarter to 27,530, the highest level since 1993.

Meanwhile, the survey shows that house price inflation in London has slowed sharply to 10.9 per cent from an annualised rate of 18.6 per cent last August, with prices in the City of London - where housing is limited - showing an outright drop of 7.9 per cent.

In fact, the strength of London house prices masks overall weakness in the UK generally. In Wales, growth has nearly stalled over the past three months, with house prices on an annualised basis rising 0.9 per cent. Within London, house price inflation continues to be strongest in Kensington and Chelsea..

Outside London, house price inflation in April rose at an annualised 2.7 per cent, barely above the rate of inflation for the past year.