The Nationwide Building Society reported a 1% fall in prices for February and Bank of England figures showed that mortgage approvals fell to an 8 month low in January. These are the latest in a string of figures to point to a cooling in the UK property market, but is it a new trend for 2010 or just a blip?

The latest figures from Land Registry (based on actual property sales) show an average annual price increase of 5.2% with London and the South East seeing the sharpest increase of up to 10.5% in certain areas, whilst other parts of the country are seeing prices fall. The Royal Institute of Chartered Surveyors reported that in February, the number of homes coming onto the market outstripped the number of new buyer enquiries for the second month in a row.

Although mortgage approvals fell, the Council of Mortgage Lenders reported that about 30% of all sales are cash. This sizeable number of cash sales indicates it is wealthier buyers out there purchasing property and they tend to target quality properties in prime locations, hence keeping prices higher in these areas. To that end, it is essential to ensure that you undersatnd what is happening in your local market, not what is being reported on a national level.