House prices will fall by 3% in 2008: Average cost down by almost £13,000 to £205,000

In the next two years it is more than likely to see house prices falling, this means that it will wipe thousands of pounds of prices, it is said that global credit and higher interest rates will fuel a property market squeeze. The forecast is said that house prices will fall by at least 3% in 2008 and probably the same again in 2009 which means that an average cost of a home will go down by almost £13,000 to £205,000.

Roger Bootle who leads claims from Capital Economics and who is a former chief economist at HSBC plus one of the Bank of England’s committee of ‘wise men’ under the last Conservative Government has put this claim forward, he did not rule out the fact that the 1990s crash that crushed many people who owed more on their homes than they were worth and even worse repossessed will not be repeated.

House price falls which are seen in Spain, France, Ireland, US will be repeated in the UK according to Capital Economics and that economic conditions are very similar, there was an imposed five increases in the base rate by The Bank of England which will add hundreds of pounds too monthly mortgage repayments.

Source – Full Story

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