The Internet looks set to change our lives yet again and this time in the way house price movements are monitored. Figures collected by a new method of collecting asking prices from right across the web show no signs at all of any housing market recovery.

According to Home.co.uk, the system, which works more like an internet search engine, has made the largest collection of asking prices yet amassed, from across the web. The results have been analysed by the house price economists, Calnea Analytics, with "unparalleled precision".

By releasing these previously unavailable figures, Home.co.uk has provided consumers and institutions alike with more independent and transparent analysis of the UK property market. In the first monthly release of their asking price index, Home.co.uk reveals some painful truths about the overall performance of the property sector. The national figures clearly indicate that house prices show no sign of recovery and the much-touted "soft landing" has yet to be found.

This month’s summary:

• The average asking price for residential property in England and Wales fell by 0.4% this month to £226,507.
• Asking prices fell 2.5% over last 12 months (4.4% below the rate of inflation).
• Asking prices slipped or stagnated in 8 out of 9 Regions this month with only London showing a small gain (+0.6%).

Over the last year the UK property market has suffered from considerable uncertainty (and speculation) in the wake of the rapid rise in UK house prices experienced in 2003/4. Minor gains and falls have failed to produce a coherent trend over this period, says home.co.uk, and the overall picture of the UK property market is one of price stagnation. It remains to be seen whether the 4% price correction that took place around Dec04/Jan05 will be sufficient to stimulate further demand or whether further reductions may be needed.

Regional Markets

This data emphasises the current disparate nature of the UK housing market showing a 13.7% price change differential across the regions. The North-South divide is diminishing but the differences in average house prices remain significant. Such conflicting regional trends serve to attenuate any overall trend in national indices. Hence further attention will be given to the regional indices (including Scotland) next month.