Chesterton Humberts has revised downwards its forecast for the housing market in 2012.
It is now predicting that prices will end the year 2.5% lower. It initially predicted that average national house prices would remain flat.
The firm says that its reforecast has been prompted by quarterly contractions in the economy, and that despite Government initiatives to try and improve mortgage availability, approvals continue to slump and consumer appetite for borrowing remains weak.
Nick Barnes, head of research at Chesterton Humberts, said: “The property market is not in the position we expected it to be in this time last year.
“The uncertainty surrounding the economy has had a knock-on effect, with mortgage lending in particular, the appalling weather we have had since May and the distractions of the Queen’s Diamond Jubilee and the Olympic Games all impacting negatively on buyer activity.”
Comments
Yet "The Truth" isn 500,000 peolple will buy this year, so your rant is just plain stuuuuupid!
Why don't all you so clever folk solve the world economic problems, not sure if you have noticed 5 years on its not the UK property market!
"consumer appetite for borrowing remains weak."
Why is that Chesterton Humberts can see this, but politicians and the Bank of England can't? So far their efforts to tackle the current crisis involve making more credit available to people who on the whole are already up to their necks in debt.
"Do have some more food... What's that you say, you're full?... Well do try and eat as much as you can..."
The answer to a debt crisis is not more debt. Data out yesterday showed half a million households are now subject to some form of forbearance on their outstanding mortgages. The solution is insolvency, bankruptcy and repossession so money can be reallocated toward more productive uses that generate growth. Based upon this data and the government's inept response though, we're hitting rock bottom with a pneumatic drill.
"The Truth": please stop ranting and please - get yourself a life.
Nick Barnes, head of research at Chesterton Humberts, said: “The property market is not in the position we expected it to be in this time last year"............You thought people are still dopey enough to part with large amounts of cash for over-priced rubbish. Got that wrong then didn't you and that is the way its going for the foreseeable future, People either CANNOT or WILL NOT pay these stupid prices anymore.The general consensus of opinion is that houses are vastly over-valued.