Prices may fall say National Homebuyers

Global Insight says that it expects house prices and new buyer enquiries to have fallen in September as a result of deteriorating market conditions.

[UKPRwire, Tue Oct 09 2007] Economist at the firm Howard Archer did not paint a rosy picture of the market, which may lead to an increase in people looking for a quick sell on their property.

"Evidence is mounting that the housing market is now cooling markedly in the face of the financial market turmoil and the increasing affordability pressure on house buyers coming from higher interest rates… and modest real disposable income growth," said Mr Archer.

He went on to point to a "particularly soft" August housing market survey by the Royal Institution of Chartered Surveyors.

One of the biggest problems for anyone looking for a quick sell on their property is the prospect of a lack of new buyers entering the market.

Property expert Julian King says, "The property market will continue to have problems, prices will fall because the number of potential buyers available is limited.

"Additional lending restrictions will certainly limit the number of first time buyers able to enter the market".

Mr King is a director of National Homebuyers, the UK's leading quick property sale firm that offers a Sell and Rent Back and fast sale solution for homeowners who need a quick property sale.

Like Mr King, Mr Archer believes that the market is due to see a continued decline in enquiries from first-time buyers.

"We also expect new buyer enquiries to have fallen back further, particularly as the Northern Rock crisis may well have increased people's caution about buying a house," he added.