Is a property market CRASH imminent? Expert warns house prices could fall to lows of £70k

Property news revealed recently that a crash could see house prices drop to £70,000 in some regions of the UK.

Predictions of a crash have caused shockwaves in the property market.

As house prices are starting to flatten, home owners are fearing that their investments will not come off.

A property market crash could see house prices fall to £70,000 in Northern Ireland, and would take seven years and seven months to recover across the country, experts are claiming.

Another property expert has weighed in to give his view on the currently somewhat unstable British property market.

David Hollingworth from mortgage broker London and Country said: “We are still seeing some conflicting data.

“It definitely feels as though the tide is starting to turn in terms of house price growth.”

He confirmed that house prices are beginning to level off after years and years of growth. 

David told What Mortgage: “At the moment there is still a plateauing and there could be some room for some prices to come off a little bit.”

However, he did add: “I don’t think there is likely to be a crash yet – the lack of property to buy is propping prices up.”

Homeowners in London have the most to fear, as David says the price plateau is faster in the capital than elsewhere the UK.

Last month is was revealed that if there is a crash Londoners would see their property fall in value by £85,592.

Experts have confirmed that property values will flatline June 2017, which may contribute to a potential crash. 

Martin Ellis, Halifax housing economist, said: “House prices have flattened over the past three months.

“Overall, prices in the three months to June were marginally lower than in the preceding three months. The annual rate of growth has fallen, to 2.6 per cent; the lowest rate since May 2013.

“Although employment levels continue to rise, household finances face increasing pressure as consumer prices grow faster than wages.”

The biggest drop in value in the case of a crash would effect those in the South East. 

The average house price in the South East is £315,807, and after a crash today it would be worth £253,327. This is a devaluation of £62,480.

Using data from the Land Registry, eMoov looked at the fall in property prices across each region at their pre-crash peak in 2007 and their lowest point in 2009, before values started to appreciate again. 

Using the current average for each region, eMoov then worked out what an identical drop over the same time span would mean today.