House prices - Fall continues

29 July 2010
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Will house prices continue to fall?

It is quite likely that prices will continue their slower drift downwards over the coming months. Price movement is quite location specific. If you are considering buying a home there is no need to rush, but you should arm yourself with information so that you get a true feel for price movement in your intended area of purchase.Some areas have witnessed stabilisation whilst others drift.

From a borrowing perspective lenders continue to operate quite tight lending policies with a number of lenders having recently reduced their level of funding. For example, Haven mortgages will only take 75% of second income into account, have reduced their maximum loan amount to 80% and, will not take account of room rental in their calculations.

If you add this trend to rising interest rates and continued economic uncertainty one would conclude that house prices will continue their downward movement.

Follow the link below for the latest house price report from the ESRI

House price report