Panic-selling could spark home improvement boom
A new report has suggested that buy-to-let investors could soon look to rid themselves of what seems like a poor investment by panic-selling their property – a phenomenon that could have dire consequences for the rest of the housing market.
The Numis Securities forecast includes a prediction that the average UK house price could fall below £100,000.
"Our core headline forecast is that UK property prices remain between 17 per cent and 39 per cent overvalued based on fair valuation," the report read.
"Moreover, history has shown us that when property…which has experienced a price bubble corrects, the price tends to fall below fair value for a period of time, as confidence in that market remains low."
If this is the case many homeowners may abandon plans to sell and look instead towards improving their property.
Adding a conservatory or roof light can add to the value of a home and help it reach its full potential.
House prices are already suffering and recent figures from the Council of Mortgage Lenders did nothing to suggest that the situation would be rectified soon, as mortgage lending has fallen again.