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19 Sept 07 - Fears Over House Price Crash Eased
Concerns over a potential collapse in house prices have
been eased, after an economist said there is little chance
of a 1990s-style market implosion. Simon Rubinsohn, chief
economist at the Royal Institution of Chartered Surveyors,
said he believes there is only a 10% chance that the value
of property could fall steeply.Overall he is predicting
a period of stability with house price growth remaining
flat over the coming 12 to 15 months.
Ray Boulger, senior technical manager at John Charcol,
also said it is unlikely there will be falls in property
costs. And he said that the problems in the credit markets
could even be good for house price inflation in the long
run. He claims the biggest factor affecting house price
growth is interest rates, and while people have been expecting
them to hit 6%, it now looks like rates have reached the
top of the cycle and may even come down.
Source: Royal Institute Of Chartered Surveyors
News items supplied by SelectNews, produced by PA Business,
part of the group that owns The Press Association, the UK's
national news agency. Copyright (c) PA Business 2007.
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