House prices 'will fall but not crash'

15 May 2008

UK house prices are expected to fall further over the next few years, but not crash, one expert has surmised.

The Property Investors Network (Pin) has claimed that, although house prices may dip further, after two or three years they should stabilise.

Simon Zutshi, founder of the company, explained that some areas' house prices will rise during this time, but that some may fall, potentially resulting in a five per cent drop in prices.

"[Over] the next two or three years prices are going to come down, I don't think they are going crash down like most people are saying in the newspapers," he commented.

He added that no-one knows what is going to happen.

He also commented on the fact that the government targets for building three million houses by 2020 may not come to fruition at the current rate of building.

Last year, the government launched the Housing Green Paper, which set out the building targets. Among the aims set out in the paper is a target for more social housing, as well as greener and more affordable homes.

Househunters should ensure their property is protected when they move home with a good storage system.


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