The Hereford Times

House price fall 'welcomed by many'

8:18am Monday 12th May 2008

More people are hoping for house prices to fall than to rise, according to the results of a new poll.

The BBC-commissioned survey found that 28% of respondents wanted a drop in property prices, compared with 22% who hoped for an increase.

And in an indication that crash fears may be misplaced, almost two-thirds said a fall of more than 10% would not negatively impact on their household spending.

The research comes on the back of a series of gloomy data from the mortgage industry.

In April average house prices fell by 1.3%, according to the UK's largest lender, Halifax. It contributed to the first year-on-year drop since February 1996.

The BBC's poll suggests that for some people this negative trend may be welcomed. In addition, nearly half of those asked said they wanted house prices to stay the same.

A stagnation or fall in prices could help hard-pushed first-time buyers who have struggled in recent years in the face of high price hikes. It could also encourage those hoping to trade up to a larger house in the near future.

And with the underlying UK economy far stronger than it was during the property bust of the early 1990s, fears of the impact of a sizeable fall in house prices appear to be less pronounced.

More than 60% said a drop of more than a 10th would make no difference to their spending plans or make them likely to spend more. That compared with 38% who said it would make them more likely to cut back.