Website design, SEO and other Estate Agent News
24
Jul
Credit Crunch Not All Doom and Gloom
Speculation about falling house prices in the UK is rife at
present, with officials from various related industries making
their predictions.
According to a report from the Nationwide Building Society
stated that after ten years of enjoying a housing boom, it saw in
May house prices tumbling by 2.5%. This being the largest monthly
fall recorded by Nationwide since 1991, making house prices 4.4%
lower than they were this time last year.
Peter Bolton king, Chief executive of the National Association
of Estate Agents (NAEA) believes, "There is no denying that the
credit crunch has affected confidence in the market - especially
first time buyers who are finding it hard to find financing to get
on the ladder- but it is still important to remember that the
underlying factors that support the property market remain: low
unemployment, historically low interest rates and a pent - up
demand for houses. Therefore, rather than a dramatic fall that some
doom and gloom merchants are predicting, it shows we are looking at
a return to a more steady market rather than the fantastic prices
hikes we have seen in the previous 10 years."
Local Government and The Department of Communities state that,
"When looking at trends in the market, it is important to remember
that UK house prices are 39% higher than five years ago. The
current issue affecting the market is fundamentally about the
supply of credit -a very different situation to the early 1990s
which was about high interest rates and unemployment."
The Royal Institute of Chartered Surveyors states that, "The
difficulties in the mortgage Market are stretching accessibility
and threaten to reduce transaction levels By 40% this year. With
buyers unable to secure financing on reasonable terms, Some sellers
are now choosing to cut prices. The market will only stabilise once
transaction volumes recover. The government and the Bank of England
should continue to implement measures to restore the smooth
functioning the mortgage market, before the drop in transactions
and prices begins to really hurt the economy."
Back to Top