16-01-2008
Expert outlines positive effect of housing downturn
News by Adfero for Simply Business - independent providers of business insurance, business finance, landlord insurance, buy-to-let mortgages & commercial mortgages.
The ongoing decline in the price of properties has been identified as beneficial to those looking to purchase a new home.
David Kuo, head of personal research at fool.co.uk, believes that, although first-time buyers should continue to act in a cautious manner, the fall in property prices is - overall - good for those looking to purchase a property.
"In 2008, even though house prices will be down by about 20 per cent, it will still represent about six times the average salary, which is still quite high," said Mr Kuo.
"First-time buyers have to be very, very cautious I think."
In related news, research conducted by fool.co.uk has found that, of those who expect to purchase a property over next five years, 50 per cent will not be changing their plans, despite the predictions that house prices will fall by a significant amount.