Investment professional predicts house prices to fall by 10%
February 5, 2008
According to one investment professional house prices in the UK are set to fall by 10% this year, and the average home could actually fall in value by around £18,500, which equates to around £50 per day. The prediction has been made by Neil Woodford from Invesco Perpetual, who states that house prices in the UK are simply too high. The investment expert, aged 47, stated that some parts of the country are set to be hit harder than others.
According to Woodford the owners of new build flats for buy to let investors are going to be particularly hard hit, as he stated that this type of property is pretty much unsellable. The predictions of the housing guru are more negative than previous reports and predictions that have come from other industry experts in relation to house price reductions. According to a recent report the prediction from Woodford was actually part of a report that was designed for clients of the company and not for general consumer use.
In his report Woodford stated that the millions of homeowners in the UK needed to prepare themselves for a rocky period as house prices plummet. He also stated: ‘Although my forecast is for house prices across the UK to fall eight to 10% in 2008, the decline may be much worse in certain areas.’
There have already been many predictions from industry professionals with regards to the fall of property values in the UK, although the level by which house prices are expected to fall has varied from one report to another. However, this prediction is one of the gloomiest yet in terms of how hard property price falls could hit homeowners in the UK this year.
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