Friday 27th June 2008
Three-quarters of consumers are predicting that house prices will fall further this year, according to a new survey.
The first quarterly property tracker survey from the Building Societies Association (BSA) - carried out by YouGov - has revealed that 74 per cent of homeowners expect house prices to fall further from their current levels by 2009.
When queried over the extent of price falls, 25 per cent of consumers foresaw a drop of between one and five per cent, with the average forecast being a fall of 7.1 per cent.
Adrian Coles, director general of the BSA, admitted that people buying property were less positive than in previous years but felt that this should be kept in perspective.
He said: "Property price inflation has been so great over recent years that a 7.1 per cent fall in prices means that most people still have considerable equity in their property.
"Moreover, we must never forget that falling house prices mean that first time buyers now have more purchasing power."
House prices have fallen by an average 1.2 per cent in June, with owners of new build flats particularly vulnerable - some experiencing falls of up to 40 per cent from their 2007 value.
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