Prices set to tumble again in 2010
Any ideas of a quick fix to enconomy look to be over, no matter what the government say we are still plumbing the depths of recession with years to wait before the good times return.
Property prices in the UK have recovered from a 14% deficit on 2007 prices by around 9% but many reliable market insiders are predicting another fall in prices for 2010. With many homeowners staying put, the stamp duty legislation changes and the finances of the country not recovering quite as fast as had been hoped the market is set to see a drop in average house prices.
Average prices have fallen already by 1% and with the usual slump in prices at the turn of the year and the associated drop in mortgage approvals it may be the summer of 2010 before we see any progress on the economy. There are fewer buyers with less money to spend and reduced borrowing potential.
With many lenders creeping back to their old ways of granting 90% mortgages etc are we seeing the strong fiscal leadership we were promised by the FSA and Government?