House prices to drop by 25%, says government

Posted: 26 Nov 2008 12:13:16 GMT

            Property News - House prices to drop by 25%, says government

The Treasury has stated in the pre-budget report that next year homeowners could see the value of their property fall by as much as a quarter, it has been reported.

In a marked contrast to the optimistic view of the housing market painted in recent months by the government, the figures are much more in line with private analysts' predictions.

Such predictions forecast that house prices will lose up to a third of their value as recorded at their 2007 peak.

After the sharp falls during 2009 the government has suggested that house prices will begin to take on modest rises in 2010.

Private sector analysts have predicted similar price rises, but have argued they will begin between 2011 and 2013.

With low confidence in the market and selling times taking an average of 12 weeks, homeowners will be looking to save money anywhere possible.

Alternative selling methods, such as the choice to sell a property online, may provide a good way to avoid expensive estate agents' fees.

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