Property price falls 'hard to predict'

Mon 8 Mar 2010 - Published in Mortgages

The extent to which UK property prices will continue to fall is hard to predict, an expert has pointed out.

Paul Collins, property editor at BuyAssociation.co.uk, claimed that anyone who makes predictions about the future of the housing market is "just guessing", because of the range of factors at play.

"There are so many variables which will lead to a great deal of uncertainty in the market. The possibility of an election and a hung parliament is particularly bad news," he explained.

Mr Collins also noted that the Bank of England will eventually have to raise the base interest rate from its historic low of 0.5 per cent, which could have a negative effect on the market.

However, the expert claimed that first-time buyers could find the situation beneficial, as new builds may have an attractive price - although the need for substantial deposits is still likely to affect them.

Recently, the Halifax House Price Index showed that property values dropped by 1.5 per cent in February - the first fall seen since June 2009.

News Categories

News Archive

News: Property price falls 'hard to predict'