3
Apr
Crash talk 'is unnecessary'
A house price crash is not likely to occur, according to new
comments made this week by the economics editor at the Sunday Times
David Smith.
Speaking at the Chartered Institute of Housing Institute's
conference, Mr Smith argued that, despite the current economic
situation, any doom-mongering is over the top.
He believed this is the case because property prices have grown so
dramatically over the last decade and that they would have to dip
again by a high percentage to see "negative equity" return.
In the face of falling house prices and borrowing fees, any
pessimistic words should not exaggerated, he noted.
Such thoughts were matched by the executive director of the
Intermediate Mortgage Lenders Association Peter Williams who stated
that UK is different to the US market in that tighter lending
criteria is used on these shores.
This week, Iammoving.com claimed that the popularity of renting
properties is likely to continue in the year ahead as people
struggle to pay for homes.