February house prices fall faster

House listings hang in an estate agent's window in an undated file photo.

LONDON (Reuters) - The fall in house prices in England and Wales accelerated in February and average sales over the previous three months hit its lowest in more than 30 years, the Royal Institute of Chartered Surveyors said on Tuesday.

The RICS monthly price balance fell to -78.3 from -76.6, though it remains above last September's record low of -84.5.

Average sales completed per surveyor sank to 9.5 for the three months to February from 9.8 in the previous survey, the lowest since the RICS started the series in 1978.

Data from mortgage lenders Halifax and Nationwide both show property prices down around 20 percent from their peak in late 2007 after a shortage of mortgage finance and growing worry about job security has put many Britons off buying a new home.

Surveyors expected prices to continue to fall over the next three months, with the index only up a fraction at -78.

Nonetheless, the RICS survey showed new buyer inquiries rising at their fastest pace since August 2006.

"This can be explained by the sharp cuts in interest rates as well as the decline in house prices; both of these factors have improved affordability," the RICS said.

(Reporting by David Milliken; Editing by Ron Askew)