House Prices Dropped In A Year

For the first time during the current credit problems, a major survey has shown house prices have dropped over the last 12 months.

The survey, by the Nationwide, shows that average house prices have dropped 1% since April 2007, bring the average price to £178,555. This follows 133 consecutive months of house price rises, since March 1996.

Natiowide's chief economist Fionnuala Earley said: 'April's fall in prices continues the trend of the last six months and reflects the weakening sentiment in the market brought about by poorer affordability and tighter financial market conditions.'