The rate of house price growth in the UK has seen a fall in the last month, new figures have shown.

Price inflation slowed from 4.2 per cent in February last year to 2.7 per cent this month, the latest house price index from Nationwide indicates.

Overall, property prices fell by 0.5 per cent in February to an average figure of £179,358 - representing the fourth month in a row in which prices have shown a decline.

Fionnuala Earley, chief economist at Nationwide, said that while prices are "clearly weakening", the trend is "not unexpected".

"House purchase approvals have been falling back sharply since the autumn and the upturn in interest from new home buyers at estate agents seen in the final two months of 2007 fell back again in January," she remarked.

Meanwhile, a recent poll of major financial institutions has indicated that an interest rate freeze is widely expected when the Bank of England's monetary policy committee meets next week.