House prices in record fall

The latest Nationwide House Price index has recorded the largest fall yet seen in UK house prices.

In its July monthly figures the lender recorded a 1.7 per cent monthly drop and said 8.1 per cent had been wiped off the value of homes in the past year.

This amounts to £15,000 off the value of the average home and the lowest price recorded by Nationwide since 2006, stated chief economist Fionnuala Earley.

People concerned about the value of their homes could carry out renovation work on them such as fitting a new kitchen or a loft conversion, as this could help boost the price and offset any falls in value driven by the market.

New research by Standard & Poors suggests that house price falls may go on for some time yet.

The credit ratings agency has said that by next April there could be a further 17 per cent knocked off house values.