House prices 'will keep falling'

By Jonathan Dawes, Mon 1 Mar 2010 - Published in Mortgages

House prices are expected to continue to fall in the UK, according to an expert.

Recent figures from Nationwide showed that homes decreased by one per cent in value during February, possibly due to the expiry of stamp duty holiday and the snow storms which blighted the country.

However, Firstrung chief executive Paul Holmes claimed that bad weather had little effect on house prices and laid the blame at the feet of poor market conditions.

"We've had a pause for breath and house prices will now continue on a slow, downward spiral until we reach a peak to trough fall of about 30 per cent," he predicted.

Mr Holmes added that first-time buyers could benefit from further falls in value, as they make the UK's housing stock more affordable, although those at the top end of the market stand to lose a significant amount of money from the decline.

The expert also claimed that the result of the upcoming general election will have no effect on the fortunes of the housing market, as its problems are caused by wider economic issues such as mass unemployment.

News Categories

News Archive

News: House prices 'will keep falling'