The downward pressures on house prices in the UK remain strong as affordability constraints continue to concerns households around the country, it has been claimed.
Howard Archer from analysts firm Global Insight is convinced that potential house buyers are finding increasingly tough to secure a deal and existing mortgage borrowers are struggling to become debt free.
Mr Archer’s comments came in response to the latest figures from Nationwide that showed year-on-year house prices are currently falling at 6.3 per cent but that the dip was not as sharp in June as had been the case in May.
“This is hardly the most reassuring of news and does little to dilute concerns that we are headed for a sharp correction in house prices,” said Mr Archer.
Last month, Mr Archer insisted that the housing sector is “being throttled” as more and more families find it tough to cope with their debt management issues.
By Frank Charlton