Property price fall will affect ‘debt burdened homeowners’
Debt-burdened house hunters and homeowners will be affected by house price falls more than others, one expert has warned.
Katie Tucker, the technical manager of mortgage advice company John Charcol, made the comments following the release of Nationwide's house price index.
The index revealed that property values are one per cent lower than at the same time 12 months ago.
"New house purchase mortgage approvals specifically are down a daunting 44 per cent year-on-year and these lost movers are the first-time buyers with small deposits, the borrowers with previous credit problems and the buy -to-let landlords with minimal rental income," she said.
Ms Tucker added that consumers have also been hit by the rise in the cost of living.
Earlier this week, Michael Coogan, director general of the Council of Mortgage Lenders, predicted that the number of property purchases in 2008 will fall compared to the amount of transactions in 2007.
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