House prices 'to drop £50k before return to health'

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House prices 'to drop £50k before return to health'

The Centre for Economics and Business Research (CEBR) has revealed that the average home in England will drop £50,000 from its pre-credit crunch price before the market once again returns to better health.

House prices fell once again last month by another 1.6 per cent as the CEBR predicts that the market will lose an average of 25 per cent of its peak value by the end of 2009, an Evening Standard report claimed.

Giving his views about the state of the market, Hometrack director of research, Richard Donnell, said: "Weak consumer confidence continues to undermine demand for housing with a 35 per cent fall in the number of buyers registering with agents over the last six months.

"The supply of homes for sale has started to shrink in recent months as well, as some homeowners take their properties off the market. The scale of the decline in demand means prices remain under constant downward pressure."

Households hoping to save cash during this economic slump are being advised not to cut out their home insurance policies.

October 27th 2008

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