UK House Prices to fall another 10%?

Discussion in 'UK Property' started by Damian George, Mar 15, 2011.

  1. Damian George

    Damian George New Member

    House prices fell by 1.4% during January as the property market continued to come under pressure from Government spending cuts and the mortgage drought.

    The drop left the average cost of a home just 0.5% higher than it was in January last year at £208,552, according to the Department for Communities and Local Government.

    It was the eighth consecutive month during which the annual rate of house price inflation has fallen, and the latest rise was considerably lower than the 3.8% jump seen in December.

    The three-month-on-three-month change, which is generally seen as a smoother indicator of market trends, also pointed to an acceleration in the rate at which prices are falling.

    Property prices dropped by 0.4% during the three months to the end of January, compared with a 0.2% decline in the quarter to the end of October.

    House prices are coming under pressure as potential buyers sit on their hands in the face of the looming Government spending cuts and economic uncertainty, while those who want to press ahead with a purchase are continuing to struggle to raise the mortgage finance they need.

    Howard Archer, chief UK and European economist at IHS Global Insight, said: "The housing market will be pressurised over the coming months by high and likely-to-rise unemployment, negative real income growth, the increasing fiscal squeeze, very low consumer confidence, and ongoing difficulties in getting a mortgage, particularly for first-time buyers.

    "We suspect that house prices will fall by around 5% in 2011 and end up losing around 10% from the peak levels seen in the first half of 2010."

    To read More visit The Press Association
     
  2. expo09

    expo09 New Member

    We hear a lot about falling prices but if you ask me, they haven't actually fallen that much. The economic situation over the last couple of years have made it no easier for people to buy (in fact harder due to the likelihood of getting a mortgage).
     
  3. james.dan

    james.dan New Member

    I have also read a news that UK house prices will fall through 2012 and it is suspected that house prices could fall by around 10% between now and the end of 2011.
     
    Last edited: May 18, 2011
  4. Damian George

    Damian George New Member

    Uk house prices look still at levels that aren't sustainable whilst uk banks aren't lending money. It is true that there are now 90% mortgages but unless you have a 25% deposit or a mummy and daddy that will underwrite your house purchase these aren't going through.

    So therefore without buyers, prices must fall.
     
  5. jcamorgan

    jcamorgan New Member

    Prices on the Isle of Man just keep rising!!
     
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