House prices to fall according to National Homebuyers

A leading financial analyst has forecast that house prices will fall in 2008, causing financial difficulties for many.

[ClickPress, Mon Dec 24 2007] Global Insight had previously predicted that price growth would be flat in the new year but has now altered its outlook.

Economist at the firm Howard Archer said that fears over the state of the wider economy may force many potential homebuyers to think twice before entering the market.

"Global Insight now expects house prices to fall by three per cent in 2008, having previously expected them to be flat. We also expect house prices to remain muted for an extended period beyond 2008," he said.

"Rising concerns about the overall state of the economy may well make people more unwilling to risk stretching themselves to buy a house. Furthermore, growing speculation that the housing market could see a sharp correction over the coming months may also increasingly deter potential house buyers.

"In addition, house prices in London could be markedly hit by City job losses and reduced bonuses, particularly if the credit crunch and financial market turmoil continues for some time to come - which seems highly likely," continued Mr Archer.

Quick sale property expert Julian King adds, "Most properties in most areas will see their velue fall in the coming months.

"This is a continued effect of there being uncertainty in the market, the introduction of Hips, overvalued prices and a lack of buyers because of amendments to lending criteria.

"Out analysts are predicting further growth in the number of properties National Homebuyers will buy in the coming year".

Mr King is a director of National Homebuyers, the UK's leading fast property purchase firm, guaranteeing to make an offer on any property in the UK, regardless of its condition or location for vendors who need a quick sale. The company also offers a Sell and Rent Back mortgage rescue scheme for homeowners who want to release equity in their homes.

Rightmove has reported that prices fell by 3.2 per cent between November and December, potentially leading to financial difficulties for many.

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