Monday 30th of March 2009
House prices have fallen to levels last seen in September 2004, new figures from the Land Registry have revealed.
Data released by the body has shown that property values continued to decline in February, dropping by two per cent.
This brings the annual change in house prices to -16.5 per cent, with the average property now valued at £153,862.
The property market slump could mean a number of homeowners who purchased their house in recent years using a high loan-to-value mortgage may have fallen into negative equity.
Such a situation could mean some mortgage holders will need to consider non-borrowing options and seek IVA advice.
Recent research by GfK NOP predicted that five million homeowners in the UK will be in negative equity by the end of 2009 should prices dip another ten or 12 per cent during the year.
And it stated that 700,000 of the people likely to be affected are already heavily debt burdened.
- House price rise 'may not indicate recovery'
- Equity release 'needs to be increased'
- Need for IVA help could increase as expert predicts reduction in lending
- Government announces 'breathing space' for those needing IVA help
- Lack of subprime lending creating need for IVA help, expert suggests
- Over 55 and still in debt? An IVA could secure your financial future
