Consumer confidence in house prices takes a tumble
January 8, 2008
According to the results of a recent survey consumers confidence when it comes to the housing market has taken a real battering, with confidence levels tumbling compared to last year based on the result of the study. The survey was carried out by This is Money and involved four thousand respondents. The results indicate that around three quarters of those involved in the study are expecting house prices in the UK to fall in the coming year, and over 50% of these think that the fall will be 11% or greater.
A similar survey was carried out in December of 2006, but in last year’s poll over 50% of respondents were expecting house prices to go up in the coming year, which would have been 2007. However, this year the story is somewhat different, and the various changes that have taken place over the year coupled with predictions from experts with regards to the future of the housing market has seen the result differ quite dramatically compared to last year’s results.
Should there be a fall of 11% in the coming year when it comes to UK property prices the price of a £194,895 property could plummet by £21,500. The survey results showed that 6% of respondents expect house prices to remain unchanged in the coming year, and despite predictions and existing evidence to suggest otherwise, around 19% are still expecting house prices to go up in 2008.
Industry experts state that the housing market has been hit by a number of factors over the course of the year, and this includes tighter credit conditions following the credit crunch, increased interest rates over the past year and a half, and decreased interest from first time buyers.
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