Accountants forecast significant fall in property values
Wed 2nd Jan, 17:17:07 GMT
Homes across the UK could fall in value by an average of £20,000 each by next Christmas, an accountancy firm has warned.
Grant Thornton suggested that falling house prices could be a serious blow to the country''s economy, with the value of housing stock falling by a total of £400 billion and people becoming less willing to spend in other areas.
Maurice Fitzpatrick, a senior tax partner at the firm, said: "It appears that house prices hit their peak in August. We can expect a fall of three per cent by the end of 2007, followed by a further fall of seven per cent in 2008."
However, some property professionals have questioned the predictions, with Nigel Jones, director of John Francis estate agents in Carmarthen, Wales, telling the Western Mail that although people need to be realistic about what their property is worth, the market is still in relatively good health.
"A realistic [sale] price has a good chance of selling quickly at that price," he argued, adding that the market does need "a bit more vendor realism in terms of price expectation".
Grant Thornton suggested that falling house prices could be a serious blow to the country''s economy, with the value of housing stock falling by a total of £400 billion and people becoming less willing to spend in other areas.
Maurice Fitzpatrick, a senior tax partner at the firm, said: "It appears that house prices hit their peak in August. We can expect a fall of three per cent by the end of 2007, followed by a further fall of seven per cent in 2008."
However, some property professionals have questioned the predictions, with Nigel Jones, director of John Francis estate agents in Carmarthen, Wales, telling the Western Mail that although people need to be realistic about what their property is worth, the market is still in relatively good health.
"A realistic [sale] price has a good chance of selling quickly at that price," he argued, adding that the market does need "a bit more vendor realism in terms of price expectation".
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