A major body of building surveyors warned that house prices in Britain could fall in 2008. The Royal Institution of Chartered Surveyors (Rics) say they may fall to an extent not seen since the 1990s.
Some factors for the price falls are interest rate rises (which affect how much homeowners pay each month) and the fact that many banks have imposed stricter lending policies.
House price falls mean that the new batch of homes put up for sale will be cheaper to buy. House prices in Britain, particularly in the South East, are unrealistically high, due to the fact that the number of properties being built each year has fallen in real terms (it’s in line with government policy). The demand for new homes has never been greater, but the supply has never kept up.
There needs to be a major campaign to increase the number of new homes built each year in order to tackle the real crisis. Surely a home for most people should be a place to live, not a virtual cash cow.