Fall in house prices expected

The substantial majority of us expect house prices to fall - and not recover for two years, according to a new survey.

14:17 31 August 2004

The substantial majority of us expect house prices to fall - and not recover for two years, according to a new survey.

The survey by the housefund website revealed that, 88 per cent expect prices to fall, but 89 per cent do not expect to see an improvement for at least two years.

Only 12 per cent surveyed are planning to buy a home in the next six months, while 21 per cent said that they could not afford it.

On the selling side, 63 per cent are not planning to sell, whilst 21 per cent say that now is the time to sell.

The survey also revealed that interest rate rises are of little concern to the public. When asked about the impact of rate hikes, 65 per cent said they are not worried.

Meanwhile, 25 per cent acknowledged the increase of mortgage repayments, whilst nine per cent feel that they'll never be able to afford a home.

Finally, the majority of homebuyers are targeting the south-east of England, with most planning to buy a detached home.