Barratt Boss Warns of House-Price Falls

Summary


THE credit crunch and woes of Northern Rock will push down demand for new homes and could result in price falls, Britain's biggest housebuilder warned today.

Barratt Developments chief executive Mark Clare said: "Over the last week, since the Northern Rock crisis blew up, we have seen other mortgage lenders become much more cautious. There has been a massive shock to the market and, not unsurprisingly, lenders have rapidly tightened their lending criteria." He said the long-term fundamentals for the UK housing market remained unchanged with demand still far exceeding supply, but in the short-term there is bound to be a weakening of the market.

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Extract


Barratt Boss Warns of House-Price Falls

"Trying to pin down what is happening based on one week's data is impossible," said Clare. "But we are se...

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