Friday, January 8, 2010

MPG Investments Home Buyers Predict Sharp Falls in Property Prices

MPG Investments, the UK's leading quick sale home buying company, is predicting falls in UK property prices to resume through 2010.

London, UK (PRWEB) January 8, 2010 -- MPG Investments, the UK’s leading property and home buyers, is warning that property prices in the UK face steep declines, falling as much as 25% over the next two years.

According to Jason Shaw, the managing director of MPG, “Affordability remains a key problem, with prices so far above the earnings trend that a first time buyer now requires a deposit of 100% of income, as opposed to 30% in the year 2000.”

Bond markets in the global financial sector have also factored in a total peak to trough fall of 40% for UK property prices, but Mr. Shaw believes this also includes an overshoot in falls before prices stabilise at around 30-35% down.

“You simply need to look at how bad economic conditions are in this country. On the one hand, near-zero interest rates are preventing this recession becoming a depression, but at some point interest rates will have to rise.

“Secondly, there remain no positive economic indicators. Even a potential climb out of recession is being driven by government spending, which is neither sustainable nor providing a reliable overall outlook on the health of the economy. The danger is that it is digging the country into an even bigger hole we will take longer to get out from.”

Meanwhile, low interest rates and government action have helped reduce the number of repossessions compared to previous recessions, but Mr. Shaw warns that people need to still actively avoid and stop repossession being an issue in the first place.

“A number of people are already selling their homes and moving into rented accommodation in order to preserve their equity against further property price falls. Anyone looking for a quick house sale is welcome to contact MPG.”

Contact:
Jason Shaw
MPG Investments
T: 0800 634 9231
http://www.mpginvestments.co.uk/

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[Via Legal / Law]

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