House price fall not surprising

Those debating whether to move or improve should not be surprised by the news that house prices fell again in April, a property expert has asserted.

Recently released figures from Nationwide show the average value of property dropped in the last month – in spite of a slight rise in March.

However, Royal Institution of Chartered Surveyors (Rics) chief economist Simon Rubinsohn explained the statistics were not unexpected.

The expert said the resumption of the downward trend was in line with the main indicators in the Rics monthly Housing Market Survey.

He added the market has yet to reach its bottom, before suggesting the sales to stock ratio is the best indicator of price movements.

This has begun to edge up, which Mr Rubinsohn described as being a good sign for property values.

However, he asserted that while prices may begin to stabilise later in the year, the weak economy posed a threat to this occurring.

"More positively, measures announced in the budget particularly on improving the flow of mortgage finance could help first time buyers to enter the market in a more meaningful way," Mr Rubinsohn commented.

Other measures in the Budget included £1.4 billion being set aside to develop a low-carbon economy.