UK: Housing Market ‘Far Worse’ Than Figures Suggest
November 17th, 2008Via: Independent:
House prices across the UK have already fallen far further than official data and market indicators suggest, Rightmove, the online estate agent warned yesterday, as it revealed that up to 300 estate agents were quitting its service every month.
While the latest figures from leading mortgage lenders such as Halifax suggest that prices are down by 15 per cent from their peak, Rightmove said the falls were up to two-thirds higher.
Miles Shipside, the commercial director of Rightmove, said: “Estate agents tell us that the actual prices that are being achieved [initially between buyers and sellers] for property are down by about 20 to 25 per cent beneath peak asking prices. That has not come out in the national indices.”
His revelation suggests that house prices have not only fallen much further than the highly regarded surveys of Halifax and Nationwide, which both track house prices based on agreed mortgages, but could also be lagging behind the situation on the ground.
Nationwide’s latest survey said prices in October were down by 14.6 per cent on the same month last year, while the Halifax’s revealed they were 15 per cent lower in the same month.
Seema Shah, property economist at Capital Economics, said: “We are expecting a trough of 35 per cent down by the end of 2009.” Asked about house prices for next year, Mr Shipside said: “It hinges on unemployment and repossessions. If there are more repossessions then prices will drop further.”
