House price falls to slow says Ward

Predictions of a further 14.4% decline in house prices are too pessimistic says Henderson New Star's ...

Predictions of a further 14.4% decline in house prices are too pessimistic says Henderson New Star's Simon Ward. The chief economist says house prices are now at fair value based on rents and it is unlikely they will significantly undershoot as in previous busts as low interest rates will limit forced selling. "A key difference from prior busts is the low level of mortgage interest rates, which is allowing many struggling borrowers to continue to service their loans," says Ward. "The Council of Mortgage Lenders last week reported that repossessions and arrears cases rose by less than fe...