Builders Merchants Journal At the forefront of publishing to the UK merchanting industry for more than 95 years
HBOS, the UK’s largest mortgage lender, is warning house prices could fall by 9% this year
An increasing number of people in mortgage arrears have prompted HBOS, owners of the Halifax, to issue a warning on house prices.
The bank believe that prices could fall by up to 9% this year and have described the housing market as remaining “subdued”. They estimate that the number of transactions – which usually trigger spending on RMI work – would be 45% lower than in 2007.
Today’s comments follow those of February, when the bank said house prices would be “flat” for 2008, and April, when they said there would be a “mid single digit percentage decline”.
Figures last week from the Nationwide building society indicate a fall in house prices of nearly 5% for the first quarter of 2008 and by 3.2% in the past three months.
