Discontent over house prices

There is no upside to falling house prices for the Labour Government, one research organisation says. Fitch Solutions said the Government was likely to face increasing dissatisfaction from homeowners as house prices fell. House prices are already down markedly from their peaks last year and there are predictions the peak-to-trough fall will be about 20%. ‘‘Higher debt servicing and declining house prices will [force] households to rein in consumption. It came as no surprise why around 62% of homeowners, in a poll by Tablot Mills in February, stated they do not want prices to fall.’’ Fitch said the Government would not get much approval from would-be first-home buyers either, who would be unimpressed by the increase in mortgage interest rates.