Debt help: RICS reveals house price fall

Professional debt solutions could be needed if people find themselves in negative equity following house price falls.

The latest housing market survey from the Royal Institution of Chartered Surveyors (RICS) revealed that house prices have declined.

Some eight per cent more surveyors reported a fall rather than a rise in house prices - the lowest reading in over a year.

This is in contrast to the previous month, when eight per cent more surveyors reported rising rather than falling prices.

Debt solutions, such as an Individual Voluntary Arrangement (IVA), could help people to prioritise their mortgage debt repayments.

Ian Perry, spokesman for RICS, commented: "The fall in the RICS house price measure is broadly consistent with most other recent data that has been released. This is a reflection of both the increase in supply following the scrapping of HIPS and the more cautious stance from buyers.

"Significantly, the forward looking price expectations numbers suggest that this softer trend will continue through the second half of the year."

Kevin Still, director of Atlantic Financial Management, commented: "Suppressed house prices and limited equity are likely to reduce the options for homeowners to clear unsecured debts, where many mortgage holders are reliant low interest rates to meet current contractual payments on their credit card debts and other unsecured borrowing.

"Many are just treading water and sometimes it may be the right thing to look at a long-term strategy to become debt free and this may involve a structured debt solution like a Debt Management Plan (DMP) or an Individual Voluntary Arrangement (IVA)."

Posted by Jim Mead 

Categories; Housing Debt and Bills,