Property Today

Property News

Published Date: 08 May 2008

How will house prices measure up in the months to come?

Another bank warns prices will fall

One of the UK's banks has warned that house prices could drop by as much as 10 per cent in the next 18 months.

Experts at Lloyds TSB believe there will be a sharp correction by the end of 2009. This matches other recent predictions made by other financial institutions.

At the beginning of May, the Halifax Bank of Scotland – which is the biggest mortgage lender in the UK – also warned it expected to see falling prices for two years.

You would think this would be good news for first time buyers, struggling to afford the first step on the ladder. But last week they were hit by news that two major lenders had scrapped 95 per cent mortgage deals.

Both Abbey and Nationwide, the UK's second and third biggest mortgage lenders, declared they were demanding a deposit of at least 10 per cent.

This follows news in April that 100 per cent deals had totally vanished from the market.

Last Updated: 08 May 2008 12:23 AM

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