Britons pessimistic about 2008 prices

27-Dec-2007

Just one in five Britons believe that the price of the average home will rise in 2008, according to a new survey by Thisismoney.co.uk.

The study findings, which also revealed that three quarters of the 4,000 respondents think that prices will fall next year, illustrate the problems faced by many first time buyers who are unsure of whether now is a good time to get onto the housing ladder.

But while prices remain out of reach of many, Nationwide has said that joint mortgages and the like remain a useful way of purchasing property in a cheaper, relatively stress-free fashion.

"Many lenders offer mortgages for friends who want to buy together, which can be a cheaper and less stressful way of getting started," a Nationwide spokesperson commented.

"Plus, for many first time buyers, after years of sharing in student digs they’ll be used to living in a house full of friends already," the spokesperson added.

Current house prices, however, continue to fall, according to the latest house price index from Hometrack.

The firm found that prices fell by 0.3 per cent in December - the third consecutive monthly fall and the largest month-on-month drop seen since January 2005.

The average time taken to sell a property - 8.3 weeks - is also now at a record high, according to Hometrack, indicating that a buyers' market is now very much in place.

"Overall we expect average prices to rise by just one per cent over 2008 with sales volumes projected to be down 17 per cent," commented Hometrack director of research Richard Donnell.


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