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Most consider property over-valued

The majority of Britons think property is over-valued, but only one in four people are predicting further house price falls, a survey suggested today.

Around 25 per cent of people think house prices will drop during the coming year, down from 32 per cent who were expecting them to slide further when the same research was carried out during the first quarter of the year, according to property website Rightmove.co.uk.

Instead, 40 per cent of people think prices will be broadly unchanged 12 months from now, the seventh consecutive quarter during which the proportion of people expecting there to be no change has increased.

But despite predicting house prices will be stable during the coming year, 48 per cent of people said they thought property in their area was over-valued, rising to 66 per cent among first-time buyers.

People in London were most likely to think house prices were too high at 61 per cent, followed by those in the South-west at 53 per cent and those in the South-east at 52 per cent.

Miles Shipside, director of Rightmove, said: “There is a growing sense that many homes coming onto the UK housing market are priced too high and this is borne out by the views expressed in this survey.

“We now have a situation where half of the UK public feel house prices are too high, yet three-quarters of the same public are expecting prices to either stay the same or increase over the next 12 months.

“This suggests the prospect of a market stand-off and rising unsold stock levels if sellers don’t wise up to the house price views of their target market.”

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