House prices have reportedly fallen in the second quarter of 2017 over fears the UK could be experiencing a crash in the housing market.
The news comes in the wake of a significant decrease in the number of surveyors reporting a rise in house prices.
Halifax showed a steady fall in the month of June, in figures released this week.
Housing industry experts have commented that this fall has been a long awaited dip, which should correct over inflated house prices in the UK.
The signs of the slowdown came as the UK Residential Market Survey – one of the most highly regarded publications in the sector – was released.
The Survey is widely seen as one of the best indicators on the state of the house price affairs in the United Kingdom.
While some economists have played down the fear mongering, there is general anticipation from homebuyers.
According to the ThisisMoney website, Howard Archer, chief economic adviser to the EY Item Club, a consultancy, said: ‘I expect the survey to be pretty soft on the activity front again, with buyer enquiries, agreed sales and instructions to sell all muted.
‘It may well be that heightened uncertainty after the General Election weighed down on an already fragile housing market in June.’
While the results don’t hint at a full on crash, there is a perfect storm of circumstances, which could mimic the house price collapse of the 1990s after the stratospheric increases on property in the past five years.
However, The Mail on Sunday last weekend reported that Britain could be on the brink of a major 1990s-style house price collapse, according to an academic at the London School of Economics.
Professor Paul Cheshire, who has advised the Government on housing policy, said: ‘We are due a significant correction in house prices. I think we are beginning to see signs that correction may be starting.
Many industry insiders have remarked on the decrease in London spreading out to the rest of the UK is a key indicator of the boom slowly turning into a bust.
The UK housing market is well known for its volatility, and commentators say it is this, combined with Brexit fears, an unsteady government, a protracted period of austerity and a shortage of housing could result in a crash.
However, other corners have hit back claiming histrionics and exaggeration. Noble Francis, economics director of the Construction Products Association, speaking to ThisisMoney said: ‘The data would suggest the housing market has slowed. If it were to slow further that wouldn’t be a major surprise, but there’s no data that suggests a collapse.’