House prices to drop a further 25%?
The head of the Nationwide Building Society is reporting property prices may fall as much as 25%!!!
Also forecasted, the peak-to-trough fall in prices will reach 25%, this is a very large drop and will certainly affect a very large number of house owners. Who would fall into negative equity.
The Nationwide Building Society is easily the UK's largest and so has a very good view on the state of the UK’s property market.
In a recent survey, it has been acknowledged that Nationwide provide slightly fewer than 1/10 of all the mortgages in England, Scotland and Wales.
The head of Nationwise said in an exclusive BBC interview is that he does not expect the housing market to show signs of recovery till quite possibly 2010.
"I think we are into 2010 [before we see signs of recovery]," Mr Beale said.
"I think that next year we will see a similar pattern to this year...we will see further falls in house prices. And I think before we really get to the new world, whatever that is, I think we will be into 2010."
This would mean that a typical house (or other type of property) would have decreased in value by a quarter during the two plus years from last autumn, when prices peaked.
With these kinds of forecasts, the UK government is under pressure from banks and building societies to help them raise as much money as possible, so that they can lend more to us in the form of mortgages.
The above prediction implies that 2.5 million homeowners could be pushed into negative equity, so we are all hoping some serious relief measures can be implemented by the government as soon as possible!
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