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

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

[ClickPress, Thu Jan 10 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, although they could consider conducting a fast property sale in a bid to avoid repossession.

UK leaders for a quick property sale, National Homebuyers add that homeowners running 'close to the wire' will be worst hit. "Those facing financial difficulty while the value of their property drops must assess all available options to avoid repossession" says director Julian King.

"We assist hundreds of people each year out of repossession threats and in most cases, our customers remain living in their homes.

"Those close to the wire financially need to assess the options available to them and act before their situation deteriorates yet further".

Mr King is a director of National Homebuyers, the UK's leading provider of quick house sale and Sell and Rent Back solutions. The company guarantees to make a guaranteed cash offer on any UK property. Additionally, the company does not require the vendor to pay for a Hips pack in order to sell their house.

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