Industry News

House prices 'will fall by 6% this year' July 27, 2010

House prices will continue to fall during the remainder of 2010, Savills has forecast, estimating the drop to reach six per cent.

Lucian Cook, director at the real estate company, said: "That is a reflection of the fact that consumer confidence has weakened, housing transactions remain relatively low, mortgage lending remains relatively low and I think there is this secondary impact of things like public spending cuts."

He was commenting on recent figures reported by Hometrack, which showed that house prices have fallen by 0.1 per cent in July - the first decrease in 15 months.

The research also revealed demand for properties declined and the average time of a house on the market rose.

Mr Cook added there is a degree of caution in the market at the moment with potential buyers less willing to commit.

And according to research by Rightmove, home sellers dropped their asking prices in July for the first time this year.

The property website also reported that the number of unsold homes per agent increased by almost 25 per cent during the first half of the year.


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