House prices set to fall another 10%

Rightmove is predicting that asking prices have another 10% to fall before the housing market bottoms out at the end of next year.

The latest Rightmove house price index reveals that house prices have dropped more than 10% from their May peak, the equivalent loss of £24,692.

Estate agents are reporting that actual sale prices are currently at around 25% below their peak.

Miles Shipside, commercial director of Rightmove, says that next year will see cash and deposit-rich buyers reaping the benefits from forced sellers.

He says: “In 2009 desirable property you would not normally see in a forced-sale scenario will be available at prices that are exceptionally attractive for anyone in the position to buy their dream home.

“Sadly, the best buys will be at the expense of personal distress, but to the gain of the cash-rich who have been sitting on the sidelines.”

He adds: “The traditional mainstream buyers will be the ones left sitting on the sidelines watching quality deals pass them by, due to a continued lack of low deposit mortgage finance.”