Biggest price drop since 1992
The Halifax has revealed that the UK property market has suffered the Biggest price drop since 1992. The average price drop will be around 5%, The average house price in the UK is £191,000 rising from around £60,000 in 1992.
While house prices are down unemployment is down to a record level and property prices are driven by the labour market so these figures are seen as being an leveling out of inflated property prices.
First time buyers will need a downpayment of at least £10,000 to get onto the property ladder these days with the demise of 100% mortgages and many of the special deals the lender used to entice borrowers into taking the plunge.
It’s a very worrying time, as you start to see you investment lose value and there is nothing you can do about it, but I guess everyone in the country is in the same boat.
Comment by Elizabeth Swaim — 19 April 2008 @ 10:29 am