Matt Robinson, chief executive of data-driven estate agent Nested, says YES.There are absolutely people who should be concerned by falling property prices. With inadequate historical pension coverage, an increasing number of those approaching retirement are reliant on their homes as their main source of income. If their homes fall in value, so do their “savings”, and their futures could become considerably more difficult than they envisioned.
Matthew Addison, chief executive of StepLadder, says NO.A decline in property values represents nothing more than a price correction to an incredibly overheated market, and this is a good thing. There is still bulging underserved demand that is eager for reaching that first rung of the ladder. The costs associated with climbing onto the property ladder have ballooned out of control. In 1980, the average house price was around 3.5 times the average income. In 2018, this figure had grown to 7.8. Wage growth in the time since the financial crisis has been minimal, far surpassed by the appreciation in property values. Stringent lending regulations, increased property speculation, and a general shortage of housing stock compounds this issue of price further.
The ultimate result of this has been a collapse in homeownership among those under 35, which a fall in prices will help to correct. The cards have been stacked unfairly against first-time buyers for too long. A fall in house prices helps make things fair again.