House price forecasts put on hold by lenders
Two major UK lenders have decided that they are going to postpone making any house price forecasts for next year in the current climate, even though they have been forecasting house price movement for years. Usually the Halifax and the Nationwide tend to forecast prices for the coming year, but this has all changed following a particularly turbulent year for the housing sector where there are now mixed opinions on what will happen with house prices over the coming year.
The Halifax has added that in light of its forthcoming takeover by Lloyds TSB it did not feel that it was appropriate to make any forecasts at present. The Nationwide simply stated that at present market conditions were simply too difficult to make any forecasts.
An official from Nationwide said: “Things are changing so rapidly in the market, which makes it very difficult to forecast. “Things are changing so rapidly in the market, which makes it very difficult to forecast. ”
A Halifax official said: “HBOS will no longer exist next year so it’s been decided it’s not appropriate to make a forecast. We don’t know what Lloyds’ view is; they may not want to use our forecasts.”
Over the years the two lenders have been publishing the longest standing and most widely followed house price forecasts.
In addition to the two lenders deciding not to make any forecasts the Council of Mortgage Lenders has also decided not to forecast house price movement for nest year, stating that in the current volatile market this would be a futile practice.
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