Peter Rollings commenting on the house price figures released by Nationwide
Wed 07 Jan 2009
Its all too easy to quail at these numbers. Yes, house prices have fallen rapidly and substantially, but buyers should see that as an opportunity. If you have at least a 10% deposit it is a great time to take advantage of historically low interest rates. Its also a brilliant time to trade up the ladder you might have lost 16% on your 200,000 house, but the market has fallen across the board so youll be getting the same discount on the 350,000 house youre moving into. Youre benefiting in money terms.
But we cant ignore the reason theres so much pressure on prices there are still very limited mortgage funds available. We must see the Bank of England cut rates again on Thursday but vastly more important, we must see banks start to lend more money to ordinary borrowers.