3 per cent fall expected in 2008 according to National Homebuyers

There may be a rush of people seeking a fast property sale as Global Insight predicts that house prices will fall by three per cent in 2008.

[ClickPress, Thu Jan 10 2008] The firm has reaffirmed its forecast for the next 12 months following the publication of the Halifax House Price Index for December.

According to the index, house prices actually increased in the month but Howard Archer from Global Insight put this down to a small-scale correction following large declines in September and November.

Prices in the final quarter of 2007 were down on those in the third quarter, while the annual rate of inflation of 5.2 per cent is well below the long-term average of eight per cent.

"Despite the markedly firmer-than-expected Halifax house prices data for December, Global Insight still expects house prices to fall by three per cent in 2008," said Global Insight economist Mr Archer.

"Probably the biggest risk is that the economy slows sharply over the coming months and unemployment starts rising significantly.

"This would be liable to lead to a marked increase in the number of people having to sell for distressed reasons, particularly given the extent to which many households have had to stretch themselves to the limit to buy a house," he continued.

It is thought that there will be an increase in people seeking a fast property sale in 2008. The UK's leading fast property buyer, National Homebuyers, says homeowners facing a difficult time financially should consider a quick property sale.

Director Julian King says, "Homeowners are will experience an increasingly difficult time this year. To avoid repossession, for many, a quick house sale or a Sell and Rent Back agreement is their only option".

Mr King is a director of National Homebuyers, the UK's leading Sell and Rent Back and quick home sale provider and guarantees to make an offer on any property in the UK regardless of its condition or location. The company completes at a time of the vendor's chosing.

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