Property prices to fall over coming months?

Posted: 29 Sep 2010 08:08:43 GMT

Property prices are likely to drop over the next six months, it has been suggested.

Chief executive officer of Firstrung Paul Holmes said the cost of dwellings exploded because credit was cheap and easily available.

"You will struggle to get mortgages below [a rate of] five to six per cent unless you've got a very hefty deposit," he added.

Falls of around ten per cent are likely and after that it depends on whether the monetary Policy Committee will raise interest rates to stop inflation from getting out of control, Mr Holmes remarked.

He explained buyers can no longer get finance, as it is too expensive and those that can, will struggle to raise a deposit.

The specialist's comments follow the release of figures from Hometrack, which revealed house prices have fallen across all regions for the first time since April 2009.

And demand for housing plummeted by 2.9 per cent in September for the third consecutive month.
 

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