House prices 'won't return until 2023' |
16 2008 |
| House prices will not return to August 2007 levels until 2023, it has been suggested by one analyst, reminding many of the magnitude of the current financial crisis in the housing market. Andrew Clare, professor of asset management at London's Cass business school, said in an Earth.co.uk report that although the market is likely to bottom out in the next five years, it will be 15 years before pre-crash property prices return. Mr Clare's predictions refer to property price averages recorded by the Halifax, which put the average home at £199,600 at the peak of the buying boom. Based on such figures, property is set to drop to around £119,760 before bottoming out, Mr Clare suggested. Despite falling property values and long term negative outlook, the rental sector is booming, with a rise in demand for rental property caused by both an increase in interest from young professionals and an increase in demand from first-time buyers now restricted from the mortgage market.  |
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