House prices 'to continue on downward spiral'

Posted: 01 Mar 2010 10:04:49 GMT

UK house prices are likely to continue on a "slow, downward spiral" over the next 18 months, according to one expert.

Paul Holmes, chief executive of Firstrung, says that he expects property values to decline by a further 15 per cent during the coming 14 to 18-month period.

His comments come in response to recent data from Nationwide, which show that British house prices fell by one per cent in February, marking the end of a three-month period of growth in the sector.

While the building society attributed this fall to the country-wide cold snap that was experienced throughout January and the end of the stamp duty holiday, Mr Holmes dismissed this as "nonsense".

But he adds that the recent decrease in the value of property is not bad news for everyone: "This is great news for first-time buyers because properties will become even cheaper."

According to the Land Registry, the value of the average UK home currently stands at £165, 088.

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