The prices of city centre apartments in the North of England – one of the sectors hardest hit by the housing market slump – have reached the bottom of the market, according to Allsop.

Flats in Leeds, Liverpool, Manchester and Sheffield have been selling for between 30-60% below their peak value of 2007 at auction but Allsop said it has begun to see prices of repossessed properties steadying as potential buyers identify bargains.

The value of the northern apartments has fallen rapidly amid low demand, over-supply and a flood of repossessions because of the close links to the troubled buy-toled sector.

One analyst said new-build flats were suffering 'carnage beyond even our most bearish expectations' and found Barratt Homes were offering a 43% discount on bulk deals of five or more flats in East Yorkshire.

Daily Telegraph