After a growth of approximately 7.8% in the market this year, it has been said that the market may drop by around 0.8% in 2015. Properties are staying on the market for longer and viewings by potential buyers are falling.
The Centre for Economics and Business Research have said that affordability is becoming a real issue when purchasing properties and buyers are starting to turn away at higher priced properties, meaning sellers are having to reduce the prices on their homes. Another potential reason for the fall in the market could be due to the new rules on how buyers are assessed for mortgages and the tougher criteria that needs to be filled, plus the worry that future rates are going to start rising further.
The bigger drops will be seen in London whereby there could be a possible 2.6% drop, which has been put down to the change in house prices and some concerns surrounding the possible for ‘Mansion Tax’.
The Centre have advised that the fall should not be too extreme and so we should not worry too much, they do not anticipate a crash in the market.
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