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House prices likely to fall in next 2 years

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  • House prices likely to fall in next 2 years

    Economists from Capital Economics have claimed that property prices are likely to fall in the next 2 years, wiping thousands of pounds off prices. They believe higher interest rates and the turmoil in the credit markets will trigger a property market squeeze. It is anticipated that house prices will drop by 3% next year and [...]

    More: House prices likely to fall in next 2 years

  • #2
    Only 3%?

    I don't see this happening. Either the market will stabalise at its current level, or it will crash when the buy-to-let investors start selling up. Why would an investor who has only bought the property to make a profit sit and watch while his investment loses 5% in real terms?

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    • #3
      Indeed - 3% seems a lot lower than the previous figures of 10%-20% we've seen suggested happening overall for the next two years.

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