Fears as house prices fall

House prices in Powys have fallen by more than £5,000 in the last few months sparking fears that more homes could be repossessed.

Montgomeryshire MP Lembit Opik said: "Figures released by the Land Registry and Nationwide Building Society revealed that house prices across the UK have this month fallen by another 2.5 per cent.

"These figures show the largest monthly fall in house prices nationwide since 1991," the Liberal Democrat added.

"The news is much grimmer for Powys and those in my constituency, who have seen the average house price fall by more than £5,000 in the area."

Mr Opik said that in December last year the average Powys house price was £181,596 but by April this year it had fallen to £176,180.

He said: "The reality is that house prices have been overvalued for the last few years due to massive consumer debt.

"The market correction taking place now could have serious ramifications for those who may be facing negative equity and the possibility of repossession."

He urged the Government to put extra measures in place to prevent repossessions.

"The combination of big increases in household bills, especially fuel, and rising housing costs is putting additional pressure on people's finances when they are already stretched to the limit." he added.