House prices fall in England and Wales
The average cost of a property in England and Wales fell by 0.1% during July to £158,700 with buyers deciding to sit on the sidelines for the time being. At a when time estate agents have reported a 1.3% drop in the number of new buyers showing interest in properties there has been a 3.6% increase in the number of properties for sale. As a consequence, many experts believe that downward pressure on the UK property market will continue for some time and prices could fall further in the short to medium term.
This is a situation which many experts had predicted for the latter part of 2010 after hopes of a return to the boom time began to fade in the first few weeks of 2010. If as expected buyers continue to sit on the sidelines and sellers come to the fore there will be inevitable pressure on house prices and indeed we could see the creation of a self-fulfilling prophecy. Why would any buyer jump into the market if the trend is downwards at a time when economic activity in the UK is set to fall further?
Quite what it will take to turnaround the UK property market remains to be seen but difficult times lay ahead, especially in the short to medium term.
Share this..
Related stories
House prices continue to rise
09/07/2014 House prices are continuing to increase throughout the country, according to the UK’s largest mortgage lender, the Halifax. When measured on an annual basis, prices had increased by 8.8% in June, in comparison to 8.7% in May, taking the average house price in the UK to £183,462. Additionally, the Nationwide Building Society recently released similar figures that claimed pric...
Read MoreBuy to let 'dying', expert says
The buy to let sector is dying as house prices fall, Firstrung has suggested.According to the first-time buyer specialists, investors are falling in to negative equity due to the decline of the UK property market.This point of view is supported by recent figures from the Royal Institution of Chartered Surveyors, which revealed that just two per cent of the private landlords were planning to sell u...
Read MoreBank warns of housing crash
06/05/2014 The Bank of England has warned house prices in the UK could soon crash as prices continue to increase. The warning has come amid reports that the UK’s most expensive flat ever has been sold for £140m. Sir Jon Cunliffe, a Deputy Governor at the Bank of England warned that a momentum of rising house prices could be met with a “sharp correction”. He said that one of the ca...
Read MoreMore house price gloom in February
The Nationwide Building Society survey into UK house prices has revealed a further fall of 1.8% in February as lower interest rates and lower house prices have a minimal effect on the UK property market. The average UK home has fallen in value by over 17% during the last 12 months which equates to £31,000 for an average price in the region of £147,000. More alarmingly for those who acquired thei...
Read MoreThe Royal institution of Chartered Surveyors predicts 50,000 repossessions this year
In direct contrast to the figures released by the Council of Mortgage Lenders (CML) the Royal Institution of Chartered Surveyors (RICS) has today revealed a forecast that 50,000 homes will be repossessed in the UK this year. This is significantly less than the 75,000 forecast by the CML and places yet more confusion into the UK property market. Interestingly, the figure of 50,000 repossessed homes...
Read More