More price falls recorded

Another survey of house prices has found that they are dropping in the majority of regions.

Following the news from property website Hometrack that both the monthly and annual inflation figures for England and Wales were now negative, the Land Registry data for March also showed a dip in prices, this time by 0.4 per cent.

It also revealed the annual house price inflation level was down from 5.3 per cent to 3.6 per cent.

Just four of the ten regions saw a rise in prices, something which may suggest that anyone buying a house now could be at increased risk of negative equity.

One way that has been suggested to avoid this is to use the self build method to obtain a house for a much lower cost than the value of the finished product, allowing a greater margin to buffer against price falls.

Earlier this month BuildStore spokesman John Hay told Your Mortgage this was a good way for householders to protect themselves against declines in value.


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