Mortgage values in the UK could dip in 2012, as it has been claimed house prices in the nation are set to tumble over the next 12 months.
Paul Holmes, chief executive officer of Firstrung, noted this movement is likely to occur as a result of rising unemployment and restrictions in pay.
The industry figure explained the amount of mortgages being handed out is now at its lowest level since 2003, while the number of dwellings being sold is around half of that seen in 2006 and 2007.
Mr Holmes – who was speaking in response to the Halifax Housing Market Confidence Tracker, which suggested almost one-third of Britons believe house prices will rise as opposed to fall in 2012 – argued against the findings and claimed such downward movement “simply won’t happen”.
He added: “I would suggest a moderate fall of three to five per cent is on the cards this year, next year and the year after that.”
The Halifax research also found that more people currently think now is a better time to sell property than to buy it, partly reflecting recent improvements in home availability.
