Abacus Daily Debt News

Property values fall in March, Land Registry states

House prices dropped 0.4 per cent in March, newly-released data has shown, potentially raising the prospect of negative equity for some homeowners.

Figures from the Land Registry revealed that the average property value stood at £152,895 in the month, taking the yearly decline to 16.2 per cent.

However, homes in the capital appeared to buck this trend, with the average value rising 0.6 per cent to £299,613, while the West Midlands saw the largest fall of two per cent.

The organisation also noted that the amount of completed sales fell by 57 per cent in January compared to a year before.

In related news, research from Nationwide has found that house values fell by 0.4 per cent in April, taking the average value down to £151,861.

Fionnuala Earley, chief economist for the building society, said that the drop was "in line with expectations" when taken in context of the economic downturn.

By Jamie Price