House prices could fall by five per cent in 2012

06-Jan-2012

The Halifax has predicted that price houses could fall by as much as five per cent in 2012, as stagnant economic growth, inflation and employment woes continue.

The recent predictions follow figures from the end of 2011 that show prices fell by 0.9 per cent in December and one per cent in November. This took house prices down to the lowest level since July 2009. It also represented a fourth drop in five months towards the end of the year.

First time buyers will be closely monitoring house price levels, looking for the right time to take the leap onto the property market. Recent news from the same mortgage company showed banks are also offering incentives for mortgages, in an effort to kick start the market in 2012.

The positive news for 2012 is that inflation should settle back down, if only by a little bit. This will allow for an ease on consumers' purchasing power, which will be an important factor in stabilising the market.

Published by Helen Adams

A government first time buyers scheme can offer shared equity or shared ownership options.

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