The latest figures from Simplyzigzag.com, the premium online property group, reveal that just under half of UK-based homeowners believe their property will be worth less in 2009.
[UKPRwire, Mon Aug 11 2008] The latest figures from Simplyzigzag.com, the premium online property group, reveal that just under half of UK-based homeowners believe their property will be worth less in 2009.
According to poll of 560 homeowners, 44.6% believed their property will suffer a loss of 10% or more in 2009. This comes as property across the board has already fallen 8.8% during 2008 in the UK and backs up consensus forecast of further falls in 2009.
Furthermore, 21.4% believe they will suffer a loss of 5% or more and 17.9% believe prices will remain stagnant. Thus, how much truth do we attach to these figures, given that over 80% feel confident that 2009 will be gloomy?
Achim Amann, director at Simplyzigzag.com, said:
“As such, the UK property market is an ambiguous description of what each person perceives it to be, regardless if that individual is on the property ladder or not. We observe that sellers, who do not have to sell, are pulling out and where possible, trying to re-mortgage instead or taking a ‘wait and see’ approach. This is having two direct effects: the remaining vendors are very motivated and are responsible for the sharp drop in property prices and; the amount of transactions is dropping sharply. As a result, estate agents with their highly geared businesses are suffering the most right now and we expect a lot of branches will close. The homeowner-confidence that we measured is part of a self-fulfilling prophecy that will only change when mortgages and the availability of mortgages in general will be made cheaper for the keen buyers who are looking to snap up some really great bargains.”
These more gloomy figures are in stark contrast to those being shown by a minority group of homeowners. Just over 1 in 6 feel prices will actually go up in 2009 – with 9.8% believe there will be a 5% or more jump in prices and 6.3% are gunning for 10% or higher.
Achim Amann adds:
“The chances’ that prices will bounce back is not to be under-estimated and will definitely happen once the cost of credit and LTV rates recover. We have noticed out clients are waiting for positive indicators to emerge from the upcoming US Election (people are hedging we will endure a similar positive economic effect as the one enjoyed after Clinton won in 1992); the drop in commodity prices to a more reasonable level (because the speed of globalisation and the growth-rate in the BRIC countries is falling) and; the adaptation of consumers to a more cautious and conservative style of managing their own finances.”
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The Simplyzigzag.com poll was conducted via the company’s website over a 4 week period from 30th June – 30th July 2008, with 560 polled.
Further press information
Achim Amann, Director at Simplyzigzag.com, is available for comment and interview.
Please contact Jade Mamarbachi (Berea Group) on +963 (0)947 646788 for further details.
Simplyzigzag Limited
Launched in June 2008, Simplyzigzag.com is a premium online estate agency, offering homeowners a direct sales platform for home sales throughout the UK. The Directors are dedicated to providing a better way of selling your home, at a lower or fixed-cost, without the experience of being charged a large commission fee.
Simultaneously, Simplyzigzag.com is also a low-cost web-based estate agency, proposing properties, developments and investment opportunities in the UK and overseas, ranging from luxury villas in the south of France to developments in Sharm el Sheikh, Egypt.
