Housing market 2009 open to debate

Posted: 12 Dec 2008 12:00:08 GMT

A recent Times report has given mixed opinions of the coming year, suggesting that it could either play host to the housing market regaining confidence or experiencing greater falls in value than those seen in 2008.

Certainly, there are high chances of further falls in house prices as a recession has long been predicted and confidence in the economy and job security is low.

The recent Crosby report, commissioned by the government, added further negative opinions as to the state of the housing market as it suggested that without government cash to fund home loans, there is a chance that mortgage lending will freeze in 2009.

Liam Bailey, head of residential research at Knight Frank, highlighted the poor state of affairs earlier this week: "This cut is unlikely to have any immediate effect on the housing market, although it may tempt some buyers to make a decision.

"Prices will continue to fall into 2009. Much depends on whether the new rate is passed on to borrowers."

With market prospects so low homeowners will probably have to drop their asking prices significantly in order to make a timely sale, although selling a property online could speed up the process thanks to the higher number of buyers seeing the advert.

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