House values predicted to fall in 2008

Predictions from experts within the property markets are forecasting what they think will happen with the value of houses in the coming year. Previously it has been predicted that property prices would drop from the current annual growth of 7% to just 1%.

Now some are saying there will be no change in house prices whilst others feel there could be up to a 3% fall whilst other more optimistic experts can still see up to a 3% rise in property prices.

Obviously it is impossible to predict what is going to happen with any real certainty, and with such diverse opinions it is hard to know who to believe.

There has been a worry that those first-time buyers that chose to go with a risky 100% mortgage may find they end up in negative equity. Negative equity is what happens when your property is worth less than the amount of money you still owe to your mortgage lender. This means many people lose the option of moving house as the sale wouldn't be enough to pay off their current mortgage.

Wales and North Western England look to have the gloomiest prospects for house values along with the Midlands, whilst London as ever will only be marginally affected.

If the prices fall, it is bad news for homeowners, but every cloud has a silver lining and for those looking at becoming homeowners, you may get a chance to finally be able to afford a home of their own.