The news comes as interest rate rises have caused the market to react accordingly, with a huge slowdown in the economy expected. Financial uncertainty has been sparked by multiple contributing factors, ranging from the war in Ukraine, the energy crisis and the post-pandemic recovery costs.
Last year, homeowners were being offered sums in excess of 20 percent above the market value of their homes, but are now rushing to sell prior to the expected collapse in prices.
One of the main reasons for the slump in prices is the rising cost of mortgages, which fall in line with the interest rate hike by the Bank of England.
According to the institution, interest rates have risen in an attempt to bring inflation rates down.
The Bank of England states: “It’s our job to keep the UK’s rate of inflation low.
“We have a target of 2 percent.
“It’s higher than that at the moment.
“That’s mainly because of two things: higher prices of goods coming from abroad and large increases in the cost of energy.”
Interest rates have risen dramatically in the UK, from 0.5 percent in February to 1 percent in May.
According to one expert, the fall in house prices has been a long time in the making.
Various signs have pointed to the inevitable becoming a reality.
Journalist Isabelle Fraser said: “So far, the peak of the market is visible in small but important signals.
“Online property searches have plunged to their lowest level since the housing market was shut.
“There has also been an uptick in ‘down valuations’ – when a bank doesn’t think a property is worth the sum agreed between buyer and seller and doesn’t lend the full amount.”
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Simon English, a buying agent in London and the Home Counties said: “There has been a noticeable increase in the number of available properties since the interest rate rise.
“That’s partly because it is a traditional time to sell a home.
“But there are several houses around the £1.5million mark that I was told weren’t coming up for sale until the autumn which have now listed.”
However, not all industry professionals are so pessimistic.
Speaking to Express.co.uk, Yasser Elkaffass, Managing Director of Adam Hayes Estate Agents in Finchley, North London said: “I think crash is a crazy word.
“I think demand is still strong, and a small interest rate rise won’t make a huge difference on an average mortgage.
“Properties being seen to be reduced were the ones testing the market, and may not have reflected the true price or value when first placed up for sale.
“It therefore may not be the doom and gloom scenario predicted.”
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Mr Elkaffass continued: “As long as houses are realistically priced, there is potential for sales.
“There may be a small correction, but certainly not a crash.
“There is a shortage of properties on the market at the moment.
“We have not yet reached 5 percent interest rates, but 1 percent is still low, and hence why I disagree with some perspectives.”