Property prices ‘could fall further’

Property prices may have further to fall, it has been suggested.

Partner at Bloomsbury Financial Planning Jason Butler argued that the full effects of the credit crunch have yet to be felt in the “contraction” of prices, which he said he expects to fall further in the coming months.

He stated: “You don’t have a ten year bonanza and it unwinds in 18 months”, adding that he personally took a £17,000 loss when selling a house in 1994 that he had bought in 1989.

Such a suggestion may interest those thinking of taking out a mortgage, who might wish to examine the market to see if prices are recovering or set to drop further.

Mr Butler was commenting in the wake of a survey by Scottish Widows in which 45 per cent of respondents said property is the best investment.

It also found that 48 per cent believe a property investment is capable of surviving an economic downturn, compared with 28 per cent a year ago.

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