Friday 3rd of April 2009
Figures showing an increase in house prices should not be taken as a sign that the market is recovering, it has been argued.
Many people are likely to be facing negative equity due to recent declines in values, something that could lead to the need to seek IVA help in order to repay debts.
And although Nationwide has revealed that the average price of a home rose last month - for the first time since October 2007 - the building society warned that a sustained recovery will take time.
Figures showed that the typical property was worth 0.9 per cent more in March than in February, but with prices still 15.7 per cent below 2008 levels, homeowners could be facing difficulty in releasing equity and the need to consider non-borrowing options.
Nationwide chief economist Fionnuala Earley remarked: "While the rise in prices in March is welcome, it is far too soon to see this as evidence that the trough of the market has been reached."
Recent figures from charity Credit Action showed that the average household currently owes nearly £60,000.
- 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
- IVA help 'may be best option'
- Information on IVAs may benefit those who can't pay off credit card debts
