13 October 2010
UK property market on 'knife edge' as estate agents warn of house price falls
A total of 41 per cent more estate agents expect values to fall, compared to 38 per cent the previous month and the lowest level since March last year.
Prices are expected to drop following a sharp increase in the numbers of properties being put on the market for sale amid insufficient demand from buyers.
The percentage of estate agents who reported a rise rather than a fall in new instructions jumped to 22 per cent in September, up from 12 per cent the previous month, according to the latest housing survey from the Royal Institution of Chartered Surveyors.
The fresh influx of property to the market combined with a lack of buyers remains the key problem affecting the sector. First-time buyers are in particularly short supply as the high deposits required by lenders prevent them from taking their first steps on the property ladder. Without sufficient demand property prices continue to slip back. It’s very much a buyers market at the moment.
It comes after Britain’s largest mortgage lender Halifax said the price of the average home in Britain had fallen £6,000 in a month to £162,096.
The situation is even worse here in Ukraine. Very few banks are prepared to provide mortgages, but those that do are demanding very high deposits and then high interest rates.
The state of most economies can be judged by the situation in the property market.
We have a long way to go yet.