More houses may lead to price drop, says National Homebuyers

Councils are to be encouraged to build more homes, potentially reducing the number of buyers entering the market.

[UKPRwire, Wed Oct 03 2007] This is likely to have a detrimental effect on house prices and could lead to financial difficulties for some homeowners.

Housing minister Yvette Cooper told the Labour Party Conference that regulations would be changed in order to make it easier for local councils to embark on home-building projects.

It would lead to building rates rising from 30,000 per year to 45,000 per year and Ms Cooper told party delegates that she wants new builds to spread to "every corner of the country".

Julian King of National Homebuyers says that the increase in 'new builds' will affect current property owners' wealth. "Clearly an increase in supply will affect prices and those who want to get the most money for their property.

"It's a long term effect; those who need a quick property sale in the future will have difficulty as more choice means that the buyers have more options to chose from."

National Homebuyers are the UK's leading fast property purchase firm, guaranteeing a quick sale on any UK property, regardless of its condition, for vendors who need a quick sale.

It comes after Nationwide revealed that annual house price inflation fell in September while Rightmove claimed that house prices fell by 2.6 per cent in the same month.

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