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Middle Britain's house prices 'to drop by £40,000'
18.07.2008
Households in middle Britain are set to see the value of their properties drop by an average of £40,000 over the next six months, new research suggests.
The downturn in the housing and mortgage markets will see house prices fall by as much as 18.3 per cent for those with household incomes between £40,000 and £100,000, according to the forecast from the AXA Financial Taskforce.
It also finds nine per cent of people with mortgages in that income bracket will have difficulty in meeting their mortgage payments during the next 12 months.
Steve Folkard of the AXA Financial Task Force said: "Middle Britain may have managed to weather the storm before now, but that resilience is being seriously tested by the ongoing effects of the credit crunch."
He added that straightforward financial management and planning could help homeowners caught up in the economic downturn.
Research conducted by Abbey earlier this month found that no homeowners believe house prices will continue to decline for more than 12 months.
However, 28 per cent of estate agents taking part in the survey expressed the view that house price falls could continue for between one and two years.
The downturn in the housing and mortgage markets will see house prices fall by as much as 18.3 per cent for those with household incomes between £40,000 and £100,000, according to the forecast from the AXA Financial Taskforce.
It also finds nine per cent of people with mortgages in that income bracket will have difficulty in meeting their mortgage payments during the next 12 months.
Steve Folkard of the AXA Financial Task Force said: "Middle Britain may have managed to weather the storm before now, but that resilience is being seriously tested by the ongoing effects of the credit crunch."
He added that straightforward financial management and planning could help homeowners caught up in the economic downturn.
Research conducted by Abbey earlier this month found that no homeowners believe house prices will continue to decline for more than 12 months.
However, 28 per cent of estate agents taking part in the survey expressed the view that house price falls could continue for between one and two years.