News
Falling House Prices
14 Oct 2008
Property prices have been falling for nine consecutive months, with the average property price falling by £14,200 since last summer.
However, lower property prices do not mean lower insurance prices. The falling prices do not necessarily correspond with falling building costs, which may move at a different rate. Always check the rebuilding cost with your insurer to ensure you have adequate cover on your buildings insurance.
- The US investment bank Citigroup, suggests that by the end of 2008, Britain's property prices will have declined by almost 15%.
- This has caused a dramatic decrease in the amount of mortgages and loans. This April only 58,000 were given, while May saw a disturbing decrease, with only 42,000 loans being handed out.
- Banks and building societies are constantly increasing rates and looking for even larger deposits. Some are even refusing to lend money to home buyers. This is making it increasingly difficult for first time buyers to get onto the property ladder.
- Due to the recent slump in property values, an increasingly large number of home owners are finding that their mortgages are worth more than the actual property. This means that potentially, by the end of next March, 23,200 homeowners could find themselves falling into negative equity.