House prices are going to fall in the next three years, one expert has claimed, news that could see people consider taking out mortgages.
Paul Holmes, chief executive officer of Firstrung, believes that over the next 36 months there will be an average drop of one per cent every four weeks.
Because of this, those looking to get onto the property ladder may seek to use the situation to their advantage and purchase a home at a discounted rate.
Mr Holmes noted the fall will not be “smooth” and there will be plenty of peaks and troughs, so timing is key.
“I don’t see any good news for people that need house prices to rise. I see house prices falling and that will be beneficial to first-time buyers,” he added.
The specialist continued by saying that if the economy contracts, access to credit may also become tricky.
His comments come after a report by the Financial Times found lenders such as Clydesdale Bank, The Mortgage Works and Skipton Building Society have raised their mortgage rates in the last seven days.
