Possibility of fresh house price crash according to experts

Over recent months the value of properties in the UK has increased significantly following eighteen months of house price falls that saw the average value of a home plunge.

There has been a lot of talk about green shoots in the property market, and confidence in the property sector seems to be growing all the time.

However, with the greed apparently returning to the property sector there are now concerns that the market could be heading for another price crash, which could be devastating for the market.

Last April there were annual falls of 14 percent being reported in the property sector, but according to Halifax in the last seven months the average property price has increased by over £15,000.

However, some industry officials are concerned that all of the talk about the housing market recovery is leading to sellers asking for too much for their properties. A number of experts have said that despite the increase in house prices the average value of homes could fall by around 10 percent by the end of this year.

One property market expert said that the housing market in the UK was both artificial and unrealistic, adding that had the government not intervened with various measures there would have been more job losses and repossessions, and property prices would have been lower.

Estate agents have also confirmed that many sellers that are putting their homes up for sale are putting over-inflated price tags on their homes.

Even the frustrating tactic of gazumping has returned to the market over recent months, and one buyer who was gazumped was told weeks after his offer had been accepted that a higher one had been accepted.

He said: ‘I was absolutely furious. I told them I wasn’t going to play their game, they could take my offer or I’d walk. ‘So it was with great satisfaction when the agent rang me three weeks later to say they were willing to accept my original offer, as the other one had fallen through. ‘There are so many buyers and so few homes for sale that sellers have again got the upper hand.’

Tags: property market, Home Information Pack, Gazumping







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