3
Sep
House prices are 'likely to be unpredictable'
The cost of houses for sale in the UK is likely to remain
unpredictable, it has been suggested, as people continue to have
little confidence in the market picking up.
According to editor of What Mortgage Ben Wilkie, the instability of
property prices is the result of low consumer confidence.
He said: "I think house prices are a barometer of the confidence in
the economic situation and, because we're a bit worried about the
position we're in at the moment, house prices are going to be a
little bit more unpredictable than they would be otherwise."
His comments were made after Nationwide reported earlier this week
that house prices dropped by 0.9 per cent from July to
August.
Chief economist for the finance services provider Martin Gahbauer
said that these trends remain consistent with the "unwinding of the
supply and demand imbalance".
Mr Wilkie added that the drop in house prices will come as good
news to homebuyers, as they will need a smaller mortgage to
purchase a property. 