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Property Price Drop Poll Is Welcomed

Property Price Drop Poll Is Welcomed A surprising poll has found that more people are hoping for house prices to fall than want them to rise.

The BBC poll found that although the largest group of people - 46 per cent - wanted prices to stay the same, some 28 per cent wanted them to drop compared to 22 per cent that wanted them to increase.

The findings undermine the established political wisdom that falling house prices are fundamentally unpopular.

A drop in prices can make it easier for first-time buyers to get on the housing ladder and can also assist those looking to trade in their home for a more valuable one.


The findings coincide with revelations that house prices have fallen for the ninth month in a row.

Recent data from the Royal Institute of Chartered Surveyors (RICS) found that 82 per cent of surveyors saw a price drop between February and April, up from 66 per cent in March.

The Council of Mortgage Lenders has also warned of further price falls in the coming months, after mortgage lending in March dropped to its lowest level for 33 years.

This has occurred alongside a rise in the number of repossession orders issued after mortgage-holders failed to keep up with payments.

The Ministry of Justice said that the number of repossession orders made by the courts in England and Wales increased by 17 per cent in the first three months of 2008.

New mortgage repayments are considerably higher due to the effects of the ongoing credit crunch.

The situation for homeowners is unlikely to increase in the short-term after the Bank of England decided to hold interest rates at 5 per cent.

Consumer inflation in the UK reached its highest level for 13 months last month, and this has led the Bank to reject a cut.

A rate cut could have helped those looking to clear their debt by reducing mortgage repayments - if it had been passed on by lenders.

Bank of England governor Mervyn King has warned that the outlook for UK inflation has "deteriorated markedly”, adding that house prices were set to fall further.

Remortgage News posted on 16 May 2008

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