News: House prices need to come down to fix market - UK Net Guide

News: House prices need to come down to fix market - UK Net Guide



By Chris Malone

While falling house prices may be bad news for sellers, it will have to continue in order for the market to begin its true recovery, it has been claimed.

According to FirstRungNow.com, the decline of property values has not halted and could actually end up helping the industry.

The firm explained that homes have to become more accessible to first-time buyers through a combination of lower prices and increased financial assistance in the shape of a more competitive mortgage market.

Recent research from Rightmove revealed that sellers across the UK have lowered their asking prices by three per cent in the past month.

This marks the fifth fall in just six months and has brought prices way back down after a small recovery at the start of 2010.

Rightmove believes that homeowners could drop their prices even further, with a fall of as much as five per cent expected in 2011.

Helen Adams, FirstRungNow.com managing director, explained that it is essential to make things easier for first-time buyers as they are what the industry relies on.

"Without first-time buyers there is no movement, so dropping prices to make it a bit easier for them is probably going to be a necessity," she said.