UK House prices set to fall 15%
August 28th, 2008 | by abigail |UK Property prices could ent the year 15% Down
Yet more evidence the credit crunch is far from over was announced yesterday, Nationwide one of the UK’s largest mortgage lenders said the average price of a property fell by 1.9 percent in August, 10.5 percent lower than property prices were last August. This months figures show the largest annual drop since monthly records began in 1991.
Due to the fact unemployment is on the increase and a reccession looms many banks now refuse to offer mortgages to potential buyers that don’t have at least a 25 percent deposit.
George Buckley, chief UK economist at Deutsche Bank said:
“If prices continue to fall at the pace they have done over the past three months, they will end the year down 15 percent. With inflation, this means that residential real estate will have lost around a fifth of its value in real terms during 2008.”
Some estate agents had reported a increase in new buyer enquiries for August, this was however counterbalanced by an increase in new instructions to dampen house price growth in the short term at least.
