National Homebuyers: 'Prices to fall in 2008'
House price inflation is set to be negative in 2008, according to the Centre for Economics and Business Research (Cebr), potentially leading to a surge in the number of people seeking a fast property sale.
[UKPRwire, Thu Feb 07 2008] The organisation has revised its earlier forecast of prices increasing by 0.8 per cent over the year.
A report from Cebr has outlined the three main factors that it believes will drive house prices down in 2008.
Mortgage approvals are set to fall this year, according to the report, with the tightening of the credit markets continuing to have an effect.
In addition, a correction is likely to take place as many properties are currently over valued following the price boom of the last decade or so.
Finally, Cebr pointed out that the majority of households are struggling financially due to an increased cost of living and tightening financial conditions at home.
All of this is set to do damage to the UK property market and Cebr now believes that prices will fall markedly in the year ahead.
Fast property sale expert Julian King adds, "The combined effect of these problems will be exacerbated as the homeowner tries to sell their property on the open market.
"The average time to sell a property is now close to three months. This will simply not suffice for thousands in financial difficulty".
Mr King is a director of National Homebuyers, the UK's leading mortage rescue scheme provider, either arranging a quick property purchase or a Sell and Rent Back agreement where the homeowner can release equity in their property and rent their home back.