Hometrack claims prices set to fall

Since the peak of the property sector back in 2007 property prices in the UK have plummeted, with homeowners seeing tens of thousands of pounds wiped off the value of their properties in some cases. However, there has been a slight revival in property prices over recent months, with the end of the recession bringing about some level of recovery.

Despite the recent property value increases property website Hometrack has stated recently that in July property prices in the UK dipped slightly, and although the fall is said to be only 0.1 percent officials from the company have said that it is the first dip that has been seen in the past fifteen months.

The report from Hometrack further claims that property prices will continue to see falls over the second half of this year, adding that its recent survey of estate agents had shown that there had been an influx in the number of homeowners deciding to put their properties up for sale combined with a drop in the number of potential buyers on the market.

The abolition of the Home Information Pack, which came about after the new coalition government came into power, is thought to be part of the reason why more people are putting their homes up for sale. At the same time, continued restrictions with mortgage availability and high deposit demands are affecting the ability of many would be buyers to purchase property.

An official from Hometrack said: ‘Levels of demand for housing have been slowing for the last five months. Further modest price falls are inevitable over the second half of the year as the volume of homes for sale continues to rise and demand remains weak on the back of concerns over the wider economic outlook and uncertainty over the impact of recently announced cuts in government spending.’