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Category : Residential

Date : 27 June 2008

House_prices_tipped_for_small_drop

House prices in the UK will see a small drop over the next year, a survey has suggested.

The poll by the Building Societies Association (BSA) found that three-quarters of the public expect a dip in prices, with the average amount being 7.1 per cent.

BSA director Adrian Coles said these figures should be put "in perspective" noting that at a 7.1 per cent fall most homeowners would "still have considerable equity in their property" due to the high house price inflation of recent years.

He added: "Moreover, we must never forget that falling house prices mean that first-time buyers now have more purchasing power."

The head of personal finance site Fool.co.uk, David Kuo, told Finance Daily yesterday that for buyers the current situation will be advantageous as it will help them to negotiate a lower price for any property they are seeking to purchase.


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