» Property prices could fall 35%

The value of average property could fall by £65,000

Article Published: 21st October 2008

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House prices are once again on their way down according to economic experts who have predicted a drop of 35% by next autumn. A total of £65,000 will drop from the value of the average property according to Capital Economics who have made a series of forecasts that make uncomfortable reading, especially for homeowners who have bought their property in the past 24 months when prices had reached their peak.

This latest predicted drop in price would be the biggest fall in house price history. Around 60,000 homeowners are already experiencing negative equity each month and that figure is said to increase further to reach 335,000 in negative equity by October.

Property prices are predicted to fall for a further 12 months and to peak during 2008. A total of 1.7million homeowners will then be in the dire position of having a property they can no longer sell or remortgage due to owing more on the property that the property is worth on the open market.

Estate agents have been selling less than one property a week and only 59,000 homes were sold in September a drop of almost 50% on last September of 100,000 sales. It has been estimated that for every home bought, £4,000 is spent on white goods and furniture.