House values not set to increase

Those considering moving home have been told to be wary of a continuation of the fall in value of property in the UK.

A small revival in house prices recently has led to speculation the market may have turned the corner, but spokesperson Katy John suggested the industry will continue its decline.

She said the recent increase in mortgage rates from lenders such as Nationwide – which has moved its two-year fixed-rate 60 per cent loan-to-value deal up to 3.98 per cent – has meant prices are unlikely to rise.

"Our advice would be to continue to save and to expect house prices to fall further over the next year," she added.

Homeowners deciding to stay put and improve their home may be interested in recent Halifax research, which showed an extension, conservatory and loft conversion are perceived to be the three best ways to add value to a home.