House price growth could grind to halt in 2008
June 22, 2008
According to officials from the Nationwide Building Society 2008 could see house price growth grind to a halt in the UK. The building society states that there is to be a ’significant slowdown’ in house price growth over the coming year, adding that the current annual house price inflation level of 9.7% could plummet to 0% by the third quarter of 2008. Officials from the building society state that this forthcoming slump is down to a number of contributory factors.
Amongst the factors that will contribute to this stagnation in house price growth, according to Nationwide officials, are tighter lending regulations from increasingly cautious lenders, lack of affordability particularly amongst first time buyers, a decreasing demand for buy to let, and a general slump in the economy as a whole. One Nationwide expert stated: “A slowing economy, tighter credit conditions, stretched affordability for first-time buyers and lower house price expectations appear likely to reduce the level of activity. As we move into 2008, economic tailwinds are increasingly being replaced by headwinds.”
Demand for buy to let has also been on the decrease, and the Nationwide official also added: “Poor yields, lower house-price expectations and tighter credit conditions are all likely to take some froth out of buy-to-let and limit its contribution to price growth.” Nationwide experts also stated that although interest rates are expected to fall a number of times in the coming year this is unlikely to make any significant difference to the house price growth levels that have been predicted, although it may help to ease the impact a little.
Officials have stated that house price growth will, however, vary based on region next year, and that Scotland is expected to fare best. Northern Ireland, however, is expected to see a significant drop in house price growth after several years of continuous growth year on year.
Recent additions:
- October 2007 saw homeowners struggle with mortgage payments
- What to look out for when choosing a mortgage
- Borrowers getting fleeced on fees
- Consumers reluctant to switch mortgage lender
- Is it best to get a mortgage through an intermediary or direct from the lender Consumers that are looking for a good deal on a mortgage and are lucky enough to have good credit and a regular income can often choose from going through a mortgage intermediary, such as a
- Mortgage sector due to continue suffering says CML The Council of Mortgage Lenders has recently released a gloomy report with regards to the future of the housing market, and this is one of a number of recent reports from a range of industry
- Challenging times ahead for homeowners Homeowners in the UK are set to face some of their most challenging times over the course of this year according to officials from a debt advisory group. This comes after the Council of Mortgage
- Three brokers found to be mis-selling sub-prime mortgages A recent report states that three brokers that were found to be mis-selling sub-prime mortgages – which are mortgages that are for those with poor credit history or no proof of income – have had
- Problems could face the mortgage markets for the next eighteen months According to one industry official the mortgage and banking industries could be set to face challenging times for at least the next eighteen months, as the effects of the global credit crunch continue to take
Comments
One Response to “House price growth could grind to halt in 2008”
Got something to say?
[...] House price growth could grind to halt in 2008 [...]