The Centre for Economics and Business Research (CEBR) has revealed that there is a strong possibility house prices may begin to drop next year.
This is following the stricter lending regulations imposed on lenders by the Financial Conduct Authority, along with the fact that some potential homebuyers are anxious of possible rate increases.
The Centre for Economics and Business Research (CEBR) claims that this combination could have a negative impact on house prices, and whilst they are set to grow by just under 8% this year, 2015 may see them fall by up to 0.8%. The claims seem to be backed up by Nationwide Building Society, which has also reported a quietening within the mortgage market. Their latest report showed a slight slip of 0.2% in September, which was the first dip in almost 18 months.
The lull has arisen from the midst of the Mortgage https://www.beaconfinancialtraining.co.uk/wp-content/uploads/2020/06/cemap-online-and-classroom-training-uk.jpget Review that was carried out in April of this year. New regulations were imposed to prevent the reckless lending of previous years that many felt played a part in the financial crisis.
Scott Corfe, CEBR’s economist, said:
“Tougher mortgage eligibility criteria, high deposit requirements and concerns about future rate rises are starting to take steam out of the UK housing market. Price falls next year will be modest and we shouldn’t be too worried about this – we are not anticipating a crash.
“The market is adjusting after getting ahead of itself in the first half of 2014.”
Professionals who have undertaken the CeMAP training are qualified to give the most appropriate advice and ensure that the new regulation is adhered to.