Economists have voiced their concerns regarding the chances of a fall in house prices following the collapse of the US' fourth-largest investment bank.
While the
UK's banks' exposure to Lehman Brothers may have been minimal, it is feared that
mortgage lenders will further tighten their lending policies as a result of the collapse, triggering a fall in purchases and so a drop in
prices.
"It seems odds-on that house prices will head downwards for some considerable time to come, particularly as lending conditions could well tighten further in the near term at least amid the current turmoil caused by the collapse of Lehman Brothers," said Howard Archer, chief economist at Global Insight.
With unemployment also rising in the last quarter, there seems to be a number of factors working against the possibility of
house prices remaining steady.
As a result, many may wish to move to a smaller, more affordable home to avoid suffering negative equity.
Anybody wishing to do so should look into
safe storage as the most secure way of storing their possessions while they are in a new
home.
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