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Fastest rate of falling for 30 years for house prices
15/04/2008 16:37:00
Last month house prices in the property market dropped at their fastest rate since 1978, according to a new study.
Up to 78.5 per cent of surveyors reported a fall in house prices – the highest figure for 30 years when the first records were kept, revealed findings from the Royal Institution of Chartered Surveyors (RiCS).
The figure is a greater dip than the historic low of 1990 when 64.5 per cent was reported in price falls.
Jeremy Leaf, RiCS spokesman, said that plummeting housing prices could be attributed to less mortgage products being available due to lenders tightening their belts in the wake of the credit crunch.
"Sentiment is at a very low ebb and will continue to remain depressed while the economy suffers from this unique liquidity blight," he said.
Meanwhile, recent research from the Liberal Democrats showed that up to 60,000 homes in the UK are in danger of being repossessed during 2008.
The study focuses on those homeowners who use 75 per cent of their disposable income on making repayments on their mortgage.
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