The bargaining power of home buyers improve

Posted under General by Alan

The increase in unsold property on the property market has improved the bargaining power of buyers that pushed down prices. This is likely to have some impact on the wider economic scenario. However, economists believe that the Bank of England (BoE) owing to rising oil and food prices would prefer to cut rates probably at a more gradual rate and pace than prospective homeowners might like.

Meanwhile, house prices in the UK have registered their first annual fall for 12 years, according to the latest figures available. Prices fell by 1.1 per cent in April - the sixth monthly fall in a row. Prices were down 1 per cent from the levels in April 2007, according to the survey that concluded: “The price declines amply reflected a weakening market that had been badly hit by tighter financial market conditions and poor affordability “.

An average home now costs close to £178,550, which is nearly £1,760 lower than April 2007 price level. There had been a rather steep decline in house buying in the last six months or so largely owing to deceasing demand from first-time buyers, tighter lending criteria and higher mortgage rates.

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