House prices to fall in coming months?

Posted: 28 Jul 2010 08:32:09 GMT

Average house prices are set to drop during the rest of this year and could fall by approximately six per cent, one expert has indicated.

>Director of Savills Lucian Cook said some property prices have already decreased because the rates of growth have slowed.

"That is a reflection of the fact that consumer confidence has weakened, housing transactions remain relatively low [and] mortgage lending remains relatively low," he added.

Mr Cook noted public spending cuts have had an effect on the housing market.

Furthermore, he explained there is definitely a "degree of caution", as potential buyers are thin on the ground and are less likely to commit to a purchase.

The specialist's comments follow the release of figures from Hometrack, which revealed the cost of a dwelling dropped by 0.1 per cent in July and demand also fell by 1.3 per cent this month.

And the average time an abode is on the market has risen to 8.7 weeks, compared with 8.4 in June and 8.3 in May.


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