House prices in new fall
Britain's biggest mortgage lender Halifax has revealed a new fall in house prices.
The lender has said prices in July dropped by 1.7 per cent, taking the annual figure for house prices to 8.8 per cent less than it was a year ago.
It stated that the average UK house price is now £177,351, the same as in June 2006.
The bank's economist Suren Thiru said the reduction in mortgage rates and pressure on household incomes from rising prices had brought about the contraction in the market.
Such news means many who have bought their homes in the last two years could see themselves in negative equity.
Renovation work may reverse this effect by adding value to a property.
The International Monetary Fund has warned this week that the current fall in house prices may extend to as much as 15 per cent.