Prices set for 7 per cent collapse says National Homebuyers

UK property prices are set to fall by seven per cent in 2008, according to many industry figures.

[UKPRwire, Fri Nov 30 2007] According to the Financial Times, the City is betting in new tradeable derivatives contracts that prices will plummet.

The contracts are said to be more reliable than other non-tradeable forecasts because vast sums of money are being risked on them being correct.

"Bankers, hedge funds and property companies are putting their money where their mouth is and that makes these prices more reliable than economic forecasts in many respects," Peter Sceats from TFS Property told the FT.

"Bankers who are making these trades can get it wrong, but with contracts worth up to £100m it makes it more important that they get it right.

"It is interesting that they are more gloomy, but maybe that is because there is money involved," he added.

Cash for homes property expert Julian King saysm "A seven per cent fall in prices is bad news as more and more properties are placed onto a market with a lack of buyers.

"As more and more homeowners place their property on the open market, they will be faced with a stark lack of buyers.

"Not only will this augment the property price drop, but also lengthen the amount of time it takes to find a buyer. This will be disasterous for homeowners who need a quick house sale".

Mr King is a director of National Homebuyers, the UK's leading quick property purchase firm. The company guarantees to make an offer to purchase any property in the UK, regardless of its condition or location. The company is also the leading provider of equity release style Sell and Rent Back products.

Bookmark this release: Del.icio.us - Digg - Furl - Blinklist - Reddit