First annual fall since 90s for house prices
According to a recent report house prices in the UK are set to face the first annual fall since the middle of the 1990s, as experts continue to make predictions over forthcoming movement on house prices. Officials have said that house prices will fall in 2008 on an annual basis for the first time since the mid 90s. This comes as the result of a combination of the global credit crunch, fears of a recession, and even concerns over unemployment levels according to a recent report.
Industry analysts have said that there is a 78% chance that house prices will fall on an annual basis over the course of this year. Thirty analysts were interviewed as party of the survey. In a similar poll carried out in January the chances of an annual fall was at 65%, and in October of last year this was just 30%. The rise in the likelihood of an annual fall reflects how the credit crunch and other conditions have impacted upon the housing and financial sector.
One industry official stated: “Tightening credit conditions, weak purchasing power and a softening labour market will all prevent a resurgence in house price inflation.”
Officials have added that for the past few years house price inflation in the UK has been rocketing, but that the global credit crunch has had a severe impact, and along with other factors, has resulted in a marked slowdown in house price growth.
One economist also said: “The recent weakness in demand, evidenced by low levels of new buyer inquiries, will be exacerbated over coming months as the economy slows, unemployment begins to rise and job security is undermined.”
Recent additions:
- Bank of England cuts base rate
- Mortgage approval levels remain on a low
- Interest rate cut becomes more likely due to tighter lending conditions
- Huge drop in range of mortgage deals available
- Disaster could lie ahead for those on interest only mortgages
Related Posts
House price falls coming faster than crash of the 90’s
According to a recently released report house price falls in the UK are coming at a faster pace than the hour price falls during the crash of the 1990s. November saw the property market go through a sharp and rapid deterioration, with data from the Halifax suggesting that house prices had fallen by over 2.5 percent over the month. This took the annual house price fall for November to over 16 percent based on these Halifax figures, wiping over £30,000 from the value of the average property on an annual basis.»
House prices fall in September
According to a recent report house prices have fallen again in September, with officials from the Halifax claiming that prices have dropped by around 1.3% for the month. The Halifax has stated that the September fall means that the annual price drop now registers at 12.4%, and the average house price has now fallen to £172,108. The Halifax stated that mortgage lending conditions were still very tight, and this meant that the state of the market was likely to remain difficult.»
Slight increase in house prices reported for May
According to figures that were recently released in relation to UK property values house prices for the month of May edged up slightly from April, rising by 1.2 percent for the months. »
Nationwide predicts good news for house prices
Amidst the news that the UK has now come out of recession and things in the property market are looking somewhat brighter than they have for some time one leading High Street lender has now predicted further good news for the property market. According to the Nationwide house prices in the UK are continuing to increase, and the rate of house price increases could rise to over 10 percent a year.»
House prices fall again in October
According to recent figures house prices have fallen for yet another consecutive month, and after a fairly small price fall in September figures show that house prices have now fallen by a further 2.2 percent in October. The figure comes from the Halifax, and officials from the lender have said that the October fall has brought the annual house price drop to 13.7 percent. The average house price has now fallen to £168,176 according to the Halifax, which is nearly £30,000 lower than a year ago.»
One Comment
Leave a comment »Leave a comment
More from Mortgage News category
Ads and sponsors
[...] First annual fall since 90s for house prices [...]