A ‘Tonight with Trevor McDonald’ investigation shown on ITV this week attempted to determine why Britain's housing market is slowing down after the past decade's boom.
The programme suggested that the misery of repossession could affect far more people than first expected. And those who can afford to hold on to their home could end up being hit by the return of negative equity as property prices plummet.
Some experts have predicted that thousands of British families could face eviction from their homes if house prices crash in 2008, while others say the conditions that led to the last crash differ from the current economic situation.
“Economic conditions affecting homeowners are leading to repossessions, mortgage rescue and quick sales in a difficult property market,’ said Julian King of National Homebuyers.
The ‘Tonight’ programme backed up latest research from Your Mortgage magazine which says the majority of regions in England will see average house prices fall in 2008.
The only regions expected to experience growth this year are London and the North. Inner London is forecast to be the best-performing region of 2008 with an increase of 4.6 percent. House prices in Greater London will not be far behind, with growth of 4.3 percent, according to the figures.
The West Midlands is expected to fare worst of all regions, with house prices predicted to drop by 3.5 percent. Birmingham in particular could suffer a decrease of 3.7 percent.
However, while most areas are expected to see prices fall in 2008, the majority will recover and experience growth in 2009 and beyond.
All regions are expected to have posted improved figures by 2012, although some rises are far more modest than others. Average house prices in Walsall in the West Midlands are only expected to improve by 1.1 percent by 2012, for example. At the other end of the scale, house prices in Hackney, East London are expected to rise by 30.5 percent by the time the city hosts the Olympics in 2012.
The research, conducted on behalf of Your Mortgage by analysis organisation Prophit, drew on a number of sources to predict average property prices over the next five years for the whole of England.
