Property prices 'to fall by 10% over next 6 months'
By Sam Gooch
Oct 4, 2010 - 12:16:58 PM
An expert has said that the cost of houses in the UK will go down by ten
per cent in the next six months.
home credit deals in the near future may be pleased
to hear one expert's opinion on the direction of the mortgage and property market in the coming
According to Paul Holmes, chief executive
officer of Firstrung, the price of houses - along with products such as
tracker mortgages - could fall by as much as ten
per cent between now and March 2011.
believes that costs in this sector "exploded" prior to
the recession solely due to the widespread availability of cheap credit
from financiers, but this trend has now reversed as credit is no longer
cost-effective, despite the fact that interest rates are at 0.5 per
The expert described this as a
"perfect storm" in the market, before asserting that a
reduction in price across all estate agents is inevitable over the
duration of the next six months or so.
came after the publication of data yesterday (September 27th) by
Hometrack, which stated that the cost of houses across all regions in
the UK has fallen for the first time since April
This data reveals that demand for
accomodation in Britain has reduced by 2.9 per cent so far in September,
which represents the third month in succession that this trend has been
In a continuation of this theme, the volume
of buyers registering with agents has dropped by 6.5 per cent, while the
supply of residential properties nationwide has also risen at a slower
rate than in previous months.
Hayward, vice president of the National Association of Estate Agents,
remarked recently that predictions from analysts and the public of house
prices being reduced puts the market at risk of becoming a
Holmes concluded that the long-term future of the sector is dependent
upon whether the Bank of England steps in to raise interest rates in
order to prevent inflation "getting out of control".
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