Will house prices go back up again?
September 26, 2008
Over recent months the financial headlines have been filled with stories about falling house prices, and many industry officials have been making one gloomy prediction after another in relation to how quickly and by how much house prices are likely to continue falling over the next year or two, with some claiming that house prices could fall by as much as a third over the next two years, which could plunge many homeowners into negative equity.
However, one recent report has gone against the grain by suggesting that whilst house prices are on the fall at the moment they downturn could stop as early as the middle of next year and house prices could then start to rise again. In fact the report, which comes from the Centre for Economics and Business Research, suggests that over the next three years house prices could actually rise by as much as 30%, and by 2012 the average house prices could be around £50,000 higher than it is now.
The news will be welcomed by many homeowners who have been fearing that they will be plunged into negative equity for many years to come, although it is difficult for many to determine which report are likely to be the most accurate given that so many industry officials expect house prices to keep on falling.
Officials from the Centre for Economics and Business Research have said that one of the factors that could contribute to house prices rising again in the UK is the shortage of houses, which is being fuelled by many housing development companies laying off staff and halting the building of new properties due to lack of property sales.
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- Will house prices rise or fall? A huge number of industry officials and agencies have been predicting since last year that since the housing bubble burst house prices would continue to fall for the next couple of years in the UK.
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- Homeowner that bought properties within last four years could face capital loss According to a recent report homeowners that purchased their properties under four years ago are worst placed to face capital losses from the effects of the ongoing house price falls, as many will have paid
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