House prices fall

Tough market conditions have triggered the fall in house prices. Many first time buyers who in recent times have opted for a 100% mortgage are finding it difficult to secure a mortgage. 100% mortgages criteria have tightened to the point where some lenders don’t want your business.

Asking prices were down 3.2% from November. London suffered the biggest drop of 6.8%. Recent indicators have suggested the housing market is cooling, with the Halifax recently reporting sale prices falling in each of the past three months.

The average house price has dropped more than £7000 now to £232′396. “The substantial drops in asking prices are further confirmation of the underlying trend of more sellers re-adjusting their prices downwards to try and tempt buyers in deteriorating market conditions,” said Rightmove’s commercial director Miles Shipside.

Now the bad credit mortgages crisis has taken it’s effect on house prices. With inflation set to slow even further, credit will be harder to get and putting it past most peoples affordability levels.