| All News | Archived News |
House prices `could drop by 20 percent in 2 years`
31 March 2008
The current slowdown in the housing market could intensify, with prices falling by as much as 20 per cent in the next two years, one industry expert has warned.
Amid tightening mortgage criteria and the current global credit crunch, Firstrung has noted that a 60 per cent reduction in the number of mortgage applications suggests "real problems" are on the horizon for the property market.
If the company`s predictions of a "huge" decline are correct, first-time buyers could benefit "massively" from such conditions, Paul Holmes, operations director at Firstrung, said.
Mr Holmes added: "I think first-time buyers are going to benefit hugely.
"You have first-time buyers who are flavour of the day from house builders who have over-developed massively and now have no customers and so the only people they can possibly look for are first-time buyers."
According to Moneyfacts, the credit crunch has seen more than 2,000 mortgage products being withdrawn from the UK market in the last year.
©2008 Gregory Pennington Ltd. Pennington House, Carolina Way, South Langworthy Road, Salford M50 2ZY. Company Registration No. 2855061
Registered in England and Wales
Part of the Think Money Group. Our initial advice on your best financial solution is free. Fees payable where continuing services are provided. Calls may be recorded for training and quality purposes.
Debt Management | Debt Solutions | Debt Consolidation | IVA | Trust Deed