House price drop 'will pass 20% in 2009'

clock

The peak to trough fall of house prices could hit 22% next year, according to housing and mortgage researcher Hometrack.

The firm says prices could fall an extra 10% next year with a further 3% decline to follow in 2010. Additionally Hometrack says the projected decline in 2009 will put affordability on a par with the lows seen in the early 1990s. The volume of open market transactions across Great Britain is also set to fall, it says, by a further 12% to 685,000, following a 45% decline in sales volumes over 2008. Net mortgage lending growth is forecast to reach £15bn in 2009, down from £39bn in 2008 and a peak of £107bn in 2007, while repossessions are expected to reach 70,000, up from 45,000 in 2008 ...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Mortgages

Client conundrum: Mortgage overpayments versus investments

Client conundrum: Mortgage overpayments versus investments

1.4 million people will see mortgage deals end this year

Laura Suter
clock 22 February 2023 • 3 min read

Summer economic update: Sunak confirms stamp duty holiday in 'mini-Budget'

Mini Budget

Hannah Godfrey
clock 08 July 2020 • 2 min read

FCA sounds alarm on equity release advice

'Tick-box exercise'

Hannah Godfrey
clock 17 June 2020 • 1 min read