Rental demand to remain high as property experts advise caution |
16 2008 |
| Prospective first-time buyers have been warned not to get carried away by the reported fall in house prices. Despite some observers claiming that the prices could fall significantly over the next 12 months, even if prices fall by a fifth, a majority of homes will still be unaffordable, David Kuo, the head of personal finance at the website Fool.co.uk has explained. "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," he said. "First-time buyers have to be very, very cautious I think." This means that demand for rental accommodation will remain strong in 2008 as young professionals wait for properties to become more affordable or attempt to save up for a deposit. At the end of last year, figures released by the Land Registry pointed to a cooling of the market, though prices still rose by an average of 0.6 per cent in November.  |
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