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Debt solution for house price falls

14/07/2010

Debt solution for house price falls

People trapped by falling house prices could need debt advice on how a Debt Management Plan could lower their total monthly outgoings as surveyors say that they expect property prices to fall.
If those with debt problems are having to meet large unsecured debt payments, as well as their mortgage, the news could mean that the possibility of selling up to reduce outgoings is no longer available.

According to a survey from the Royal Institute of Chartered Surveyors (RICS) demand from new buyers, measured by the amount of enquiries received, has fallen while the amount of sellers has increased.
It is thought that the boost in the number of sellers is partly due to the abolition of Home Information Pack (HIPS).

RICS Spokesman Jeremy Leaf said that "A shortage of stock has been one factor holding back transaction activity in the housing market but the abolition of HIPS is helping to belatedly address this issue."

"This is likely to be reflected in higher sales numbers over the coming months. However, with supply of property now beginning to outstrip demand there is a risk of some modest slippage in prices during the second half of the year."

Financial firm PriceWaterHouseCooper warned of even longer term difficulties for the housing market, predicting that there was a 70 percent chance that UK house prices would still be below peak 2007 levels in real terms as late as 2015.
John Hawksworth, head of MacroEconomics at the company said that "Although the average UK house price overvaluation of around 25% in mid-2007 is now down to around 5-10% despite the market rally since March 2009, our analysis suggests that house prices remain vulnerable to setbacks."
"The possibility of a renewed fall in house prices over the next few years, particularly in real terms, cannot be ruled out as mortgage interest rates start to rise again."

"While it can be argued in theory that house price changes have little effect on overall UK wealth, our econometric analysis suggests that an unanticipated future fall in house prices could have a significant impact in dampening the speed of the recovery in consumer spending in the medium term."

If you're finding that you are struggling to make ends meet with repayments for outstanding debts and loans eating away at your income then call ClearStart today to see how we can help reduce your debt.
If you owe more than £3000 on unsecured loans such as credit or store cards then ClearStart can negotiate with the people you owe money to and try and lower your repayments.

As well as Debt Management Plans we can offer other debt solutions such as an IVA or a Debt Relief Order or if necessary we can just provide you with clear, professional advice.

So call ClearStart today to see how we can help you get rid of your debt and let you live a life without the burden of debt hanging over you.

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