Nationwide reveals price drop

Figures from Nationwide Building Society have shown that house prices have now fallen over the past 12 months.

The monthly statistics for April indicated a monthly drop of 1.1 per cent, more than the 0.7 per cent fall in March.

In addition to this, the annual rate is now deflationary, prices being one per cent lower than they were a year ago, compared with 1.1 per cent up in March.

Nationwide chief economists Fionnuala Earley commented: "April's fall in prices continues the trend of the last six months and reflects the weakening sentiment in the market brought about by poor affordability and tighter financial market conditions."

It was the sixth successive monthly fall in prices recorded by the lender.

Those looking to acquire a house may be concerned about the possibility of negative equity caused by the downward trend in prices.

One way to avoid this may be to use the self build method to get on the ladder, with the cost savings providing a buffer between the cost of acquisition and the value of the finished product.

The Nationwide survey was the second this week to show a fall in prices on an annual basis, following a similar survey from Hometrack.


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