From 9% this year to 0% next, with some commentators preditcting some regional drops of 4% in 2008.

Trumpo agrees with the other commentators as opposed to the Nationwide’s flatline prediction. Kelvin Davidson of Capital Economics have stated 6% drop over the next two years and this is nearer the mark.

To soften the blow, Trumpo predicts a reduction in interest rates over the next twelve months, which should in itself ease the current pressures on the housing market, this soft landing from the property boom, coupled with lower interest rates should allow that first step for first time buyers to be that little bit more achieveable.

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