Are property prices still too high?

Posted: 14 Sep 2010 09:43:02 GMT

Property is still too expensive in the UK and the housing market has reached a "dead zone" in transactions, one expert has indicated.

Chief executive officer of Firstrung Paul Holmes said Brits need to have a more realistic view on the cost of a dwelling.

"I look at the amount of properties that were sold for £1 million plus in London over the past 12 months and I wonder where the money is coming from to actually buy these properties," he added.

Mr Holmes noted he cannot work out why the capital is immune to falls in transactions and values.

He explained in the past, lenders were more than happy to provide finance for those in the civil service, as they would see their employment as continuous.

However, Mr Holmes observed with the austerity measures on the way and the possibility of 700,000 job losses, mortgage lenders are reluctant to offer funding.

The specialist's comments follow the recent release of the LSL Property Services/Acadametrics House Price Index, which revealed housing transactions fell in August.
 

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