Fall in level of confidence over house prices
January 9, 2008
A recent report has shown how the level of confidence in future house prices in the UK has tumbled compared to last year. The recent survey was carried out by This is Money and shows that consumer confidence levels when it comes to house prices in the UK has taken a real battering over recent weeks. Four thousand people were involved in the survey, and the results showed that three quarters of those responding expected house prices in the UK to fall over the coming year.
The results of the survey also showed that around 50% of the respondents expected the house price fall to be 11% or more. This could see the price of a property valued at £194,895 tumble by £21,500. In a similar survey that was carried out in Decemb4er 2006 over half of those responding had stated that they thought property prices would rise over the course of 2007. However, there has been a complete turnaround this year, with the vast majority expecting prices to tumble for 2008.
The housing market has been showing signs of getting weaker for some time, with a number of factors being blamed for the ailing housing sector. Tight credit conditions stemming from the credit crunch and high interest rates has resulted in lack of affordability, high house prices has made it impossible for many people to get onto the property ladder, and even the introduction of Home Information Packs has been blamed for a shortage of properties coming onto the market.
The survey by This is Money also showed that around 6% of those responding thought that house prices would remain unchanged for the coming year, and an optimistic 19% thought that house prices may actually rise over the coming year.
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