What the experts think of falling house prices
It has now become pretty clear to most industry professionals and consumers that house prices in the UK have already dropped significantly compared to last year, and are set to keep falling over the course of this year. Some officials think that house prices could fall in excess of 20% whereas other think the house price falls are more likely to be around 5-10%. A number of officials have already expressed their opinions on recently released figures relating to falling house prices.
The National Association of Estate Agents recently said: “The issue here is consumer confidence. It is apparent from our own survey results that some people are adopting a wait and see attitude, watching the market, before making any decisions, which is affecting prices. There is no denying that the credit crunch and tighter economic factors have affected confidence in the market but it is still important to remember that the underlying factors that support the property market remain: low unemployment, historically low interest rates and a latent demand for houses.”
The Department of Communities and Local Government added: “When looking at trends in the market, it is important to remember that UK house prices are 39% higher than five years ago. The current issue affecting the market is fundamentally about the supply of credit – a very different situation to the early 1990s which was about high interest rates and unemployment.”
One economist said: “With lenders redesigning their products and mortgage provision moving back to some semblance of normality, it seems reasonable to assume that the pace of price declines will moderate as we move into the second half of the year.”
Recent additions:
- Payday loans becoming more popular what hard up borrowers
- 100% mortgage customers should watch out for negative equity
- Homeowners are not as well off as tenants
- Increasing number of first time buyers look to brokers for assistance
- Gazundering becoming more commonplace
