Nov
19
19/11/2008
It’s the question on every homeowners’ lips. Just how far, and how fast, will property values fall and when will it all come to an end? Let’s begin by taking a look back at the staggering change in the market we’ve seen over the past year or so.
Towards the end of 2007 only a tiny minority of financial commentators were forecasting a slump in the value of property but the New Year brought with it pessimism and – for the first time in many years – predictions that prices would fall. At that time the fall was described as a mere levelling off, perhaps a 5% reduction; a theme that continued into the Spring. But as Summer arrived that percentage became higher, with many banks, lenders and experts saying that the average home would drop in value by between 10% and 15%. Bad enough, but still far from today’s forecasts of a 25% to 30% drop.
Respected property giant, Savills, is sticking with its analysis that property will have slumped by 25% from its peak at the end of 2009. They point out, however, that in central London falls could be up to 30%. On a brighter note, they do predict a slow recovery, which – they say – will be strongest in the South East and will begin in 2010.
Nationwide Building Society confirms these fears, stating that it too expects house prices to continue to fall over the next two years. The lender has greatly reduced the number of available mortgages as its pre-tax profits drop 18% over the six months to 30 September.
It would seem, therefore, that there is little chance of imminent recovery and all the indicators point to the fact that house prices have yet to bottom out. Whilst this remains the case, first time buyers are hesitant, waiting to see if they can get a better deal and negotiating hard with lenders for the few available mortgages. Those most vulnerable are those who have bought over the past two to five years when prices were high and lending was lax. Mortgages of many multiples of salary can spell disaster in a falling market as negative equity comes knocking at the door and job security is threatened.
In an uncertain market there is a certain way to avoid your home being repossessed and that is to sell to Property Rescue. Their experts will give you a no obligation valuation for your home and although this will be below the current market value, it will – if you accept the offer – guarantee a sale. If you delay, the value of your home is likely to fall further, so the loss you make on the sale needs to be weighed against the consequences of putting off your decision. Anyone facing the threat of repossession will not have the luxury of time on their side and will need to act quickly.
Property Rescue talk to their clients in complete confidence. They recognise the stress that financial hardship engenders and will explain the process of buying your home in a straightforward way. Remember, there is no obligation to proceed if you are not completely happy with the service they are offering. Call Property Rescue today to find out more.