'Too soon to tell' if property market is recovering

Data revealing that House prices increased in March should not be taken as an indication that the market is recovering, it has been warned.

Fionnuala Earley, chief economist at Nationwide, explained that it is too soon to tell whether values are likely to bounce back in the near future.

The building society found that the typical price of a home in the UK rose by 0.9 per cent last month, although the level is still nearly 16 per cent below that of a year ago.

"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," said Ms Earley.

Those looking for property in London may wish to consider choosing flats to rent in Shoreditch and elsewhere, in order to avoid the possibility of negative equity.

Recent Land Registry figures indicated that prices of property in Camden have fallen by more than any other borough in the capital, with a decline of 4.3 per cent in February alone.

Written by Andy Britten

Published 3rd April, 2009

© 2009 Estates IT Limited