House Prices Falling at a Record Level

Statistics released by the Nationwide today, provide further evidence of the declining value of homes in the UK. As the UK’s largest building society, Nationwide saw the value of homes drop by 1.8% over the month of February. As a result of this fall, the accumulated drop in value of homes in the UK for the whole year is at a record level, with value falling by 17.6% over the period to the same time last year.

House prices have been monitored in this way since 1952 and the significant drop in value of homes in the UK by almost 18% over the course of a year is the biggest drop since records began. These figures indicate that house prices are likely to have further to fall before they bottom out and, hopefully for many property owners in the UK, take an upturn. This period is arguably a positive one for sitting tenants who are currently contracted in rental agreements with a fixed rent to pay rather than a hefty mortgage.

For those struggling to pay mortgages, this news is unpromising, particularly if a home was purchased in the recent housing boom. As the average value of a home has dropped to £147,746, many people will have seen their homes depreciate in value by an average of around £30,000, but their mortgages still remaining high. Many people are finding themselves falling into negative equity, and, as a result unable to pay mortgages. Missed mortgage repayments for many may result in risk of repossession.
Although buyers’ interest in buying homes has been demonstrated to be increasing and the interest rate cuts are forcing banks to reduce their rates for those on tracker mortgages, this is seemingly not having the impact it should on house prices.

For many who need to sell their homes, alternative options to the traditional way of selling are available. At Swift Capital we offer a variety of equity release solutions, allowing you to release the equity tied up in your home and use this in whatever way you choose.

Contact Swift Capital today and see if we can find a way out for you.