House Price Falls Will Help Buyers
09/07/2008
Amongst the doom and gloom surrounding the ever-decreasing property prices, a leading mortgage distributor has expressed his opinion that corrections in property prices will benefit the market in the long term.
Paul Holmes, operations director of Firstrung, told a property portal: "One of the issues that I would argue vehemently against is the fact that there has been a feel good factor about property going up in value.
"Prices correcting is healthy, but people won't see it as that because initially if you are a home owner you will feel as though you are losing money."
Holmes is adamant that a slowdown in the property market will benefit most consumers as over-inflated house prices are a nightmare.
Buyers may not have long to celebrate the good news, however: the latest house price survey from Nationwide showed that property price decreases are slowing, with June experiencing a fall of only 0.9 per cent. This is less than half of May's fall.
It could soon be easier for buyers to secure the mortgages they need to purchase property: Woolwich, the building society owned by Barclays, has announced it intends to cut the rates on its mortgages after a fall in the cost of wholesale funding.
Paul Holmes, operations director of Firstrung, told a property portal: "One of the issues that I would argue vehemently against is the fact that there has been a feel good factor about property going up in value.
"Prices correcting is healthy, but people won't see it as that because initially if you are a home owner you will feel as though you are losing money."
Holmes is adamant that a slowdown in the property market will benefit most consumers as over-inflated house prices are a nightmare.
Buyers may not have long to celebrate the good news, however: the latest house price survey from Nationwide showed that property price decreases are slowing, with June experiencing a fall of only 0.9 per cent. This is less than half of May's fall.
It could soon be easier for buyers to secure the mortgages they need to purchase property: Woolwich, the building society owned by Barclays, has announced it intends to cut the rates on its mortgages after a fall in the cost of wholesale funding.
