Credit crunch ''will contribute to price dips''


Mon 12th Nov, 12:07:45 GMT

The knock-on effects of the credit crunch will result in house prices in the UK undergoing a dramatic price correction, it has been claimed.

A report by information services firm Experian claims that while the property market in areas such as Northern Ireland, Scotland and London continues to be strong, the UK overall is set for a downturn.

Andrew Burrell of Experian''s business strategies division, said: "We expect the UK housing market to suffer over the next two years, with some regions experiencing falls.

"Although national house prices have continued to soar against a background of higher interest rates, the current boom has been uneven regionally."

Mr Burrell predicted that the south-east and east of England would see "modest declines in house prices" but commented that the south-west was likely to see "values fall much more sharply".

"By contrast, Greater London, where overvaluation is less severe than in the rest of the south, has the UK''s strongest short-term outlook after Scotland," he added.

Mortgages have also been affected by the recent economic turmoil, with some lenders re-pricing their mortgage deals in recent months, affecting both first-time buyers and those looking to re-mortgage.ADNFCR-1143-ID-18351387-ADNFCR


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