3 Sep

House prices are 'likely to be unpredictable'

House prices are 'likely to be unpredictable'

The cost of houses for sale in the UK is likely to remain unpredictable, it has been suggested, as people continue to have little confidence in the market picking up.

According to editor of What Mortgage Ben Wilkie, the instability of property prices is the result of low consumer confidence.

He said: "I think house prices are a barometer of the confidence in the economic situation and, because we're a bit worried about the position we're in at the moment, house prices are going to be a little bit more unpredictable than they would be otherwise."

His comments were made after Nationwide reported earlier this week that house prices dropped by 0.9 per cent from July to August.

Chief economist for the finance services provider Martin Gahbauer said that these trends remain consistent with the "unwinding of the supply and demand imbalance".

Mr Wilkie added that the drop in house prices will come as good news to homebuyers, as they will need a smaller mortgage to purchase a property. ADNFCR-1222-ID-800051755-ADNFCR

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