House prices fall

The majority of UK postcodes have recorded a fall in house prices this month, new research has indicated.

Figures from property portal Hometrack have indicated that in 51 per cent of postcodes the average price was down.

Overall, April saw a 0.6 per cent drop, while the annual average is now in negative figures, being 0.9 per cent lower than 2007.

The proportion of properties achieving their original asking price is also down, at 93 per cent.

Hometrack director of research Richard O'Donnell said the fall in confidence was creating the prospect of "a record low in residential sales volumes in 2008".

A study by estate agency Savills has said there may be a house price fall of as much as 25 per cent over the next two years.

Those concerned that falls in house price could mean any home they buy now might be affected by a negative equity situation may decide to look at the self build move.

By saving money on obtaining a house this way the gap between cost and value may remain favourable despite any major price drops.


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