House Prices to Fall by 30%
More gloomy predictions for house prices today with the boss of Barclays Bank forecasting that house prices with fall a further 15% next year.According to John Varley, the UK is just halfway through the house price slump, predicting that prices will fall by a total of 30%. He admitted that the banks were partly to blame for the current recession condeming approval of 100% + mortgages.
These comments are unlikely to help the housing market, with first time buyers likely to stay away from the market if prices are going to fall further.
The average home in Britain has already dropped £36,000 in value since August last year, according to the country's biggest lenders Halifax. Its latest figures show the average value is now just £163,605. A further 15 per cent fall would see the average value of a home crash by an additional £25,000 to less than £140,000 based on these figures.
Home sellers have been forced to lower their asking prices dramatically in the past month to achieve a sale. Around £5,000 was knocked off the average price of a home in the past month, according to property website Rightmove.
Rightmove forecasts that house prices will fall an extra 10 per cent by the end of next year.
However, its survey also suggested that the sale prices actually being achieved by estate agents is already down 25 per cent since May.
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