Home insurance customers should expect a decrease in property values, suggests a housing sector expert.
The fall in house values is likely to be fuelled by supply prevailing over demand, according to Lucian Cook, director at Savills.
He said that the return of confidence to the housing market had led more and more people to put their homes up for sale and could lead to market prices falling again.
Moreover, the predicted rise in the capital gains tax has also forced more people to consider selling their properties before the tax rise hits the market. This has led to another wave of fresh housing being added to the available stock, making a decrease in cost more probable.
Mr Cook explained: "If you do have a disconnection between the amount of stock on agents' books and the number of buyers around in the market, then the natural consequence of that is that prices soften."
The scene is in complete contrast to that of the past year when buyers with equity and cash to hand were flooding the market. At that time, supply was unable to meet the demand.
According to FindaProperty.com, the availability of housing has peaked to its highest level since the property boom of January 2008.
Housing stock has increased by nine per cent in May this year and the present numbers are 31 per cent higher than during the August 2009 dip.
Asking prices for available homes have also registered a 1.8 per cent rise in the last year, with quotes currently averaging £220,308.
House prices have also increased by 0.2 per cent in April this year, reflecting six months of steady improvement across England and Wales, according to figures from the website.
London continues to headline the list with house prices leaping by 14.8 per cent. On the opposite end of the spectrum is Yorkshire and Humber which saw property prices increase by only 0.7 per cent.  |
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