Flint in house price fear

Housing minister Caroline Flint has revealed that she fears house prices will fall by between five and ten per cent this year "at best".

The minister made her remarks in a cabinet meeting in which she admitted: "We can't know how bad it will get."

Ms Flint's concerns came to light by mistake when she entered Number 10 Downing Street for the meeting carrying notes within sight of photographers, with the resulting pictures uncovering her views.

The expectation that house prices will continue to fall could prompt many to be concerned that house price purchases made now could lead them into negative equity.

One way of avoiding this could be the self build option, meaning the gap between the amount spent acquiring a house and its value when completed is larger, offering a buffer against price falls.

The most recent house price survey was the Financial Times index for March, which revealed a 0.2 per cent drop in April.


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