House price predictions changed by Halifax
Earlier this year it was reported that the Council of Mortgage Lenders had changed earlier predictions relating to house price movement for this year. In the latter quarter of last year officials from the CML had predicted that house prices would rise by around 1% over the course of 2008. However, just a few months into the year the CML changed its prediction, and based on figures showing that property prices were already falling predicted that property values would fall by around 7% over the course of the year.
The government has also predicted that house prices could fall by around 5-10% over the course of the year, and some industry officials are predicting far greater falls. The Halifax, is another firm that has now changed its prediction in relation to house prices. Originally the lender predicted that house prices for this year would remain flat, but it has since made a number of revisions to this prediction, and in its latest report has predicted that house prices will fall by around 9%.
The turbulent housing and mortgage markets have resulted in a number of officials and agencies revising their predictions over house price movement for this year. More bad news came in a recent speech from the governor of the Bank of England, Mervyn King, who indicated that the Bank of England would have to take whatever action was necessary to try and bring the rate of inflation back down to target, as it has soared to 3.3%, and this could mean a hold on rate cuts or even a rate rise.
Furthermore a number of lenders have already recently hiked up the interest rates on their mortgages. One Tory Party official said: ‘This is bad news layered on bad news and it adds to the gloom that hard-pressed families are feeling. Rising borrowing costs, soaring prices and stagnant earnings are combining to squeeze living standards as the credit crunch bites further on an ill-prepared nation.’
Recent additions:
- Getting a financial adviser to help you find a mortgage
- Making the most of a consolidation loan
- House prices have plummeted since last year
- Should you take a secured loan or an unsecured loan?
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