Britain's homeowners are strikingly downbeat about the market's chances of recovery - and predict house price falls of 15 percent.
Britain's mortgage holders are expecting the current property downturn to be deep and long-lasting, a gloomy new poll from provider L&C Mortgages has found.
According to the firm, 50 percent of homeowners expect the current slump - which has seen the average home lose around eight percent of its value over the past year - to last until "at least" 2010. Moreover, the group said that they expected prices to fall by over 15 percent - or around £30,000 for each home.
The L&C poll found that most held the global economic downturn responsible for the squeeze being put on household budgets. With the onset of the credit crunch, GDP growth has slowed, lending has been restricted both between banks and from banks to customers, and prices for essential items such as food and fuel have surged strongly.
However, 25 percent of respondents also told L&C that mortgage lenders must shoulder their share of the blame for the situation.
Richard Morea, technical manager at L&C, commented: "Homeowners are catching it from all angles not only with higher mortgage rates but increasing fuel, food and energy costs. It's unsurprising that they are demonstrating a siege mentality, budgeting hard and cutting costs in as many areas as possible."
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