House prices predicted to dip by 25%
The economic downturn will lead to the average house price falling by 25 per cent over the next 12 months, research has predicted.
Figures released by the Centre for Economics and Business Research (cebr) predicted the average home to be worth £149,000 by next autumn, which would represent a £50,000 dip in value from this year.
As affordability weakens among homebuyers in the context of the credit crunch, one property owner recently placed his three-bedroom home on the market for £579,950 after being advised to sell at £625,000, Sky News reported.
The cebr believes prices may start to increase again before the end of 2009, but predicted the average value of a property in 2012 to be worth three per cent less compared to its price last year.
"Expectations of falling prices have become embedded," said Ben Read, managing economist at the economics group.
He added: "Now that the financial crisis turns into an economic crisis with rising unemployment and falling household incomes, we could see house price falls starting to accelerate again."
Mortgages for professionals provides expert mortgage advice and is committed to represent the borrower not the lender on over 30,000 mortgage products for high earning clients.
Figures released by the Centre for Economics and Business Research (cebr) predicted the average home to be worth £149,000 by next autumn, which would represent a £50,000 dip in value from this year.
As affordability weakens among homebuyers in the context of the credit crunch, one property owner recently placed his three-bedroom home on the market for £579,950 after being advised to sell at £625,000, Sky News reported.
The cebr believes prices may start to increase again before the end of 2009, but predicted the average value of a property in 2012 to be worth three per cent less compared to its price last year.
"Expectations of falling prices have become embedded," said Ben Read, managing economist at the economics group.
He added: "Now that the financial crisis turns into an economic crisis with rising unemployment and falling household incomes, we could see house price falls starting to accelerate again."
Mortgages for professionals provides expert mortgage advice and is committed to represent the borrower not the lender on over 30,000 mortgage products for high earning clients.
