A Further 10 Percent Fall Predictable in UK Prices

An influential association of MPs was informed by one of the leading economists about the further drop in the house prices of five to ten percent. The Finance Professor from Imperial College Business School in London, David Miles, felt that the after the further loss of 20% from the last year’s comparison, its high time when the property market needs to stabilize itself. These losses will thereby further adding to the 5 to 10 percent drop.

Miles also felt that once the stabilization was adopted, the number of deals and transactions would increase, quiet sharply. He opined this during his appearance before the Treasury select Committee.
Suggesting the committee, he also pointed out that any further fall of the market, even by half a point, would minimal the further falls in the Mortgage market.

At the same time, one of the members of CML, Bob Pannell felt that the due to the growth in unemployment, at present, further initiatives of repossessions would only witness a hike, even the coming next year. He contemplated that there were chances of fifty percent rise in repossession amounting to 45,000.

But then, at the same time he also opined that the anticipation regarding when the prices would further hit the bottom cannot be done, as there is evident mortgage lack at present, coupling the present expectations of falls in house prices.

Further describing the situation, he mentioned that right now such condition of disagreement has established between the people who have ample land to sell and those who do have mortgage.

But eventually, Knight Frank, the estate agent mentioned that the around 2 million citizens would thereby be left in negative equity, as the prices of house would witness the similar drop as in 20003.

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