Brits may downsize as HBOS warns of further price falls

04 August 2008

House prices dropped by ten per cent over the past 12 months, a new report from Halifax has revealed, justifying the growing trend towards downsizing currently being witnessed across the UK.

Coming on the back of a string of reports concerning the ongoing volatility of the property market, the figures released by the lender show that the cost of a typical home fell from £199,600 to the current level of £188,000 in the space of one year.

According to HBOS chief executive Andy Hornby, this market uncertainty is highly likely to get worse before the market picks up again, possibly leading to an even greater number of people choosing to sell their current homes and downsize to a smaller property so as to insulate themselves from the market developments.

"The reduced availability of credit and a slowing housing market are now part of a wider economic slowdown," he explained.

"Consensus forecasts, for the decline in house prices, is now in the range of 15 to 20 per cent over 2008 and 2009 combined."

Anyone concerned about falling house prices and wanting to downsize should look into the advantages offered by safe storage solutions.

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