There were further falls in house prices in January, according to the latest LSL Property Services/Acadametrics House Price Index.

The average house price has risen by only 0.6% on an annual basis but has fallen by 0.1% since December.

The number of transactions is now just 60% of the long term average – at just 40,600 in January.

David Brown, commercial director of LSL Property Services, said: “Concerns over the direction of the economy