BBC research shows more people want house prices to fall than rise
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BBC research shows More people want house prices to fall than to rise.
This was the first poll to test the notion that house price falls are unpopular.
Just 20% of people want house prices to rise, less than the number of people who want them to fall.
The poll by the BBC which had over 1000 people take part found that only 22% said they wanted prices to go up while 28% said they wanted house prices to come down.
Nearly 50% of people taking part, said they wanted them to stay the same.
The poll was commissioned after makers of the BBC2 TV series The Truth About Property came across a surprisingly large number of people who wanted house prices to drop.
Price falls bring economic benefits not just to first-time buyers but to any homeowner who wants to trade up to a larger or more valuable property.
The cost of the place they are selling may fall. But, all else being equal, the more valuable property they want to buy will fall by a larger amount - meaning they have to borrow less to “climb” the property ladder.
Analysts are concerned that if house prices fall too quickly it may knock consumer confidence, already at its lowest for over a decade.
Another finding for the survey questions whether it is house price falls that have damaged consumer confidence - as opposed to other factors such as food, fuel and mortgage payments.
Respondents were asked if a fall in house prices of more than 10% would make them more likely to cut back on household spending such as clothes, leisure and groceries.
More than 60% of people said it would either make no difference or would make them likely to spend more.
Only a minority - 38% - said it would make them more likely to cut back.
Nearly a third of homeowners have no mortgage on their homes - meaning no risk of negative equity.
And the programme reveals to what extent house prices would have to fall to put the average borrower in negative equity.
Posted in Mortgage news |