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Buy to let insurance customers 'to see 6% house price fall'
27 Jul 2010
Posted by Jonathan Walker
Buy to let insurance policyholders have been told that average house prices in the UK are set to fall during the remainder of 2010 – and may decrease by around six per cent before the end of the year.
Lucian Cook, director at estate agency Savills, said that rates of growth have slowed in recent months, resulting in some house price falls.
Home values can be expected to drop further as a result of weakening consumer confidence, low levels of property transactions and the impact of cuts to public spending, Mr Cook added.
Recent research from Hometrack has shown that house prices dipped in July for the first time in 15 months and demand for housing also fell, while the average time that a property was staying on the market had increased.
Mr Cook said: "There is certainly a degree of caution in the market and that is pretty evident across all markets at the moment. Potential buyers are less prepared to commit and are actually thinner on the ground."
