Britain's property market 'in the danger zone' says National Homebuyers

House prices will fall by around four per cent in the next 12 months, it has been claimed.

[ClickPress, Thu Jan 03 2008] According to the Daily Telegraph, Britain's property market is now in a "danger zone" and the downward spiral is set to be extended beyond 2008 and into subsequent years.

The Daily Telegraph/Lombard Street Research Housing Affordability Index shows that, largely due to high inflation and debt costs, house prices can no longer be classified as affordable.

Indeed, the index suggests that homes are at their most overvalued since 1991, when hundreds of thousands of homes were repossessed.

"I would say that around about now house prices are in unaffordable territory - this is the danger zone for the market. It is still too early to say yet whether what happens next will be as bad, or perhaps even worse, than the early 1990s crisis," Diana Choyleva, the director at Lombard Street Research, told the Daily Telegraph.

"We currently expect house price falls of three to four per cent. I think life will be worst in London."

The news will be a blow to homeowners in financial difficulty, says National Homebuyers. "Homeowners in distress should consider a fast property sale in a bid to avoid repossession" says director Julian King.

"The housing market is sufficiently unstable to increase the number of repossessions this year. Homeowners facing or predicting a difficult financial period should act now to avoid losing their home.

"Various mortgage rescue schemes are available and National Homebuyers' Sell and Rent Back solution allows the homeowner to release equity in their home and remain living there as a tenant. We have many options available that suit homeowners' needs".

National Homebuyers are the UK's leading quick house sale company that guarantees to make an offer on any UK property, regardless of its condition or location. The company are the UK's leading provider of mortgage rescue schemes.

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