House prices suffer first annual fall since 1990s

According to a recent report house prices in the UK are facing the first annual fall since the dark days of the 1990s, with many industry officials expecting the value of homes to plummet over the next couple of years.

It has been predicted that during this year house prices will fall on an annual basis for the first time since the 1990s.

The chances of this annual fall have been set at 78% by industry experts, following the survey of around thirty analysts within the industry.

These expectations have risen over recent months, as recent surveys in October of last year and January of this year saw the figure at 30% and 65% respectively.

One industry official stated: “Tightening credit conditions, weak purchasing power and a softening labour market will all prevent a resurgence in house price inflation.”

Another added: “The recent weakness in demand, evidenced by low levels of new buyer inquiries, will be exacerbated over coming months as the economy slows, unemployment begins to rise and job security is undermined.”

The nation has already seen evidence of slowing house price growth, and it has been predicted that many homeowners could soon find themselves in negative equity following the end of a ten year housing boom.