House Prices Update

The prediction for house prices in 2010 seems to have divided the experts. Before the onset of the recession, the UK was enjoying a period of economic prosperity and house prices had reached unprecedented highs. However, many homeowners watched with dismay as, under the grip of the credit crunch, the value of their homes flat-lined and then plummeted in a comparatively short space of time. The marketplace became sluggish and, as people decided to hang onto their money, it came to a virtual standstill. So now, given that we are leaving the economic downturn behind us, what are the predictions for the housing market over the next 12 months?

Global real estate advisors, Jones La Salle believe that the recent rise in house prices is rooted in fragile economic fundamentals, such as the weakness of the pound boosting overseas investment and a boost from the stock market recovery. Bearing this in mind, they predict that the present recovery will “stall next year.”

However, Philip Harvey of Property Vision believes that with demand threatening to outstrip supply, house prices will rise in certain areas. They believe that: “Areas such as East Sussex and Kent, which have been lagging in the recovery, will benefit from this effect and there will be a direct impact on prices.”

Despite the different stances taken by economic experts, one thing is certain; the recovery of country’s economy is likely to be slow and we are not likely to see house prices achieved in the early part of 2009 returning in the immediate future.

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Posted by admin  On  March 5th, 2010  Permanent link