Abacus Daily Debt News

House price drop ’slows down this month’

The fall in house prices appears to have slowed, it has been noted, which may be a relief to homeowners facing the threat of negative equity.

Figures from Hometrack showed that values dropped by 0.3 per cent this month, the smallest decline recorded for a year.

Commenting on this, content editor for Findaproperty.com Michael O’Flynn said that a "modest" improvement has been seen in the sector, although there is a "seasonal element" to the data.

But he stated: "It’s encouraging to see that prices are falling at a much slower rate and that there is more activity in the market."

Mr O’Flynn explained that low interest rates and reduced house prices have led people to believe that the market is close to hitting the bottom.

Over the past year, property values have declined by 10.1 per cent, while homes are being sold for around 89.6 per cent of their asking price, according to the Hometrack report.

By Jamie Price