Double-dip fear for housing market
THE housing market could be in for a double dip, a new Reuters poll of 30 housing market analysts found. Two-thirds of those asked predicted a five per cent fall from present levels.
One economist, John Hawkesworth at PriceWaterhouseCoopers, says: “There are likely to be further falls in house prices over the next year given the dampening effect of the fiscal squeeze, restricted mortgage availability and fragile household confidence levels.”
Ray Boulger, of brokers John Charcol, says: “In the short term, the biggest risk to house prices is the FSA’s Mortgage Market Review.”
The MMR aims to introduce a new era of responsible lending.