Buyers wait for more drops in house prices

NERVOUS home buyers are putting off purchasing because they believe prices will fall by up to 15 per cent next year, experts warned today.

An online poll by FindaProperty.com found that almost 90per cent of potential home buyers believe property prices will continue to fall with half predicting a fall of between five and 15per cent next year, bringing the total drop since last year to between 20 and 30 per cent.

FindaProperty.com's Michael O'Flynn said: "Falling prices continue to make buyers nervous Despite all of the Government's moves to free up liquidity in the mortgage markets, lenders remain cautious and this has clearly had an impact of buyers."

There is little short-term optimism in the market.

Only 17 per cent of buyers thought that 2009 would see a recovery and little more than one in 10 thought government action such as suspending stamp duty or cutting interest rates would have any effect on the market.

Mr O'Flynn said: "The survey clearly shows that there is considerable concern among consumers Buyers expect 2009 to be another turbulent year but are hopeful that 2010 onward will see a recovery."