Oct
18
House prices may fall according to the IMF
Filed Under Finance
House prices in the UK could tumble, according to the International Monetary Fund (IMF). They predict that the fall in property values could be as savage as those occurring in the USA.
One major house building company in the USA has seen half its house sales cancelled as buyers flee the market, or are unable to borrow sufficient funds to complete their purchases.
Although the IMF recognises that there is less sub prime lending in the UK, the fact that houses have become so unaffordable is giving them cause for concern.
Within the finance market in the UK, we have seen three mainly sub prime lenders withdraw from the market following the credit squeeze, however most people who want to borrow money still seem to find lenders willing to lend to them, whatever their credit histories.
So I’m not sure if there will be substantial falls in house prices in the UK, particularly as demand remains strong, however when you see reports that renting is now cheaper than buying a property, it makes you think that investing in property is certainly not as attractive as it was.
