Millions set to stay put as property prices fall by £4,500 a month

24 June 2008

Property prices across the UK will fall by as much as £4,500 this month, further discouraging people from moving out of the rental accommodation sector into their own homes.

New figures released by Rightmove show that the average national reversal for the month will be 1.2 per cent, while for properties in London, this will stand at 1.4 per cent.

According to many industry observers, such a trend is likely to lead an increased number of people to see rental property as the most sensible option for the time being, while many homeowners may choose not to try and make a move in a declining market, leaving them struggling for space.

Lucian Cook, head of research at agents Savills, noted: "The slowdown we faced at the beginning of the year has now become a downturn.

"We are now predicting an eight per cent fall in UK prices this year and ten per cent in central London."

Those who have resigned themselves to staying put for the short-to-medium-term future may want to take advantage of safe storage facilities to ease the pressure at home.

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