No property slump say Bexhill agents

Repossessions are said to be coming in thick and fast.

Former chairman of the US Federal Reserve, Alan Greenspan said in a Daily Telegraph interview that there are 'difficulties' looming for British housing similar to those being experienced in the US where, over the past few months property prices have been rapidly falling and people with mortgages have been struggling to keep up repayments as interest rates have increased.

According to property website Rightmove the 'average' price of property in the UK fell by 2.6% in the month up to September 17 and the Royal Institute of Chartered Surveyors reported that for the first time in two years prices were falling rather than increasing.

The Council of Mortgage Lenders reported mortgage lending also fell by 6% in August.

This fuelled speculation that the market is slowing and house price inflation is in reverse.

Next month's figures are likely to show a further drop as they will include the Northern Rock crisis.

Manager of the Bexhill branch of Fox & Son's, Daniel Cotterill personally believes the rumours are "scaremongering."

He said: "We are going through a time where we've had the Northern Rock situation and a credit crunch; both factors which are making people stop and think.

"I don't think there will be a crash in the market; I think that it will slow down and there will be less people moving but prices aren't going to drop more than a very minimal 1 or 2 per cent and over a year we go through peaks and troughs in the market anyway."

When it comes to repossessions Mr Cotterill said they deal with a large per centage of repossessions.

While last year and the first half of this year they did see an increase on previous years "that's certainly not the case at the moment."

Ken Findley, proprietor of Findley and Sons, said: "At the moment there is no evidence of prices falling dramatically.

"I would say that the market is levelling out. Scaremongering is fair comment because although it is quieter than normal at this time of year there certainly seems to be confidence still in the market."

Andrew's branch manager Malcolm Vint is only to aware of, he said: "I can't see a huge drop in prices as at the moment.

"We are short of properties to sell, I have the lowest stock levels that I've had for some time, a house we took on last week had three people fighting over it. I haven't had any repossessions at all and, the right property at the right price is still selling."

Owner of Abbott and Abbott, Rodney Gadsdon, said: "After seven years of house price increases it's quite likely that there will need to be some adjustment in prices to enable first time buyers, who have largely been priced out of the market, to get onto the property ladder.

"It's all a question of affordability, I can't see price reductions of thirty percent but somewhere nearer 10 per cent could be possible. We have had a few repossessions and this could be an increasing trend if mortgage rates continue to rise."

Rush Witt & Wilson director Roger Saunders believes that the local area is still bouyant.

He said: " I can't see any justification for people in the South East to worry about prices falling by a massive margin. Prices in Bexhill have gone up dramatically in recent years and I suspect that we might see a levelling, in fact I think that we are seeing a levelling out now rather than a dramatic increase in price.

"But I think it's a short term thing because we still have an abundance of demand overall in the south east against a relative shortage of supply.

"If the supply and demand in a free market fixed the price then we might be at our present level perhaps until next spring but I see no reason why prices will fall substantially.

"There is evidence of repossession activity which perhaps there wasn't two years ago but it's still very much a drop in the ocean."

Allan Knight, director of Chris Campbell estate agents, believes the fear surrounding a price crash could be averted if the interest rate were to come down. He said: "The market is very sensitive to recent interest rate rises; another rise could be all it takes for prices to drop."

Out-of-towner Mr Brown is looking to move from Brighton to Bexhill, he feels that house prices all over the country are, "far, far too high," adding, "if they do come down it will be good for everyone, certainly for youngsters.

"Property is getting further and further away from the younger generation, basically I think the whole thing is scandalous. "