Friday 4th January 2008
House prices are set to correct drastically in the next three years, in news likely to be welcomed by first-time buyers.
Such is the opinion of specialist advice firm Firstrung, which asserts that prices could correct by as much as 35 per cent by the end of 2010.
Paul Holmes, chief executive officer of Firstrung, said: "The short-term trend for property now will be a correction to come back in line with affordability.
"Were now reverting back to the lending standards that the banks and building societies operated within in the 1980s."
He added that the only fundamentals now underpinning the market were how much people could afford - while the amount renters could put aside for homes would limit the buy-to-let market.
The news follows figures from Halifax which asserted that the average house in 96 per cent of UK towns was now out of the reach of first-time buyers.
Additionally, the average deposit put down by such buyers had increased by 88 per cent since 2002, to stand at £34,381.
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