House Prices To Fall
Published / Last Updated on 13/07/2010
by Ashley Clark, Director
The Royal Institution of Chartered Surveyors (RICS) has issued forecasts that their members expect house prices around the country to fall marginally over the next few months. This is with the exception of London, where members still expect property prices to rise.
House prices across the country have steadily risen since its low in late early 2009 but enquiries have dropped substantially over the last few months as people become more cautious as the economy tightens and the risk of unemployment increases.
To compound matters, the finance industry regulator, the Financial Services Authority (FSA) announced yesterday that it will apply much stricter regulations on mortgage lenders with regard to affordability checks. Again, this will impact on the supply of mortgages and buyers.
Property prices are at what many believe is fair value now but given the above, we agree with RICS and suggest that property prices will fall by another 5% but will then grow, albeit slowly, over the next 5 years.
Useful links:
Contact us - Book Callback - Free Consultation - Newsletter - Money MOT - Discounts
