House Prices to Fall

House Prices to Fall.

The Centre for Economics and Business Research has forecast that house prices across the UK will drop 0.8% in 2015, after growing 7.8% this year.

The research said that leading UK indicators have already seen signs of a possible fall with fewer buyer enquiries, properties staying on the market longer and already in some parts of the UK property prices have fallen slightly.

Blame was also pointed slightly towards the Mortgage Market Review (MMR) which curbed demand for property with tougher buyer checks before approving a mortgage.

The survey said that property purchases are predicted to hold off next year for a short period with the Bank of England (BoE) raising interest rates. The rise is expected to only be slight but this will likely put off buyers from making a purchase for a short period.