The threat of falling property prices may be putting people off buying a home, it has been claimed.
Richard Bowser, the editor of Property Investor News, noted that the prospect of a decrease in the value of a house over the next 12 months could dissuade first-time buyers from entering the market.
Also, he stated that the “big” deposits that are required to secure a mortgage in today’s climate may be a factor in this.
Those looking to get onto the housing ladder may have a “logical” fear of spending their savings on a deposit, only to see their investment “completely blown away” by declining values, Mr Bowser explained.
Falling prices could result in some homeowners facing negative equity, which can potentially lead to people needing future debt help.
In February, house values fell by 1.8 per cent with the average standing at Â£147,746, according to Nationwide.
By Jamie Price