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The problem for many forcasters at the moment is that few expected the property market to stabise this year, many thought prices would continue to fall. However, not only have house prices stablised, we are even seeing small price rises in some areas where demand is higher then supply. Add into the mix that the economic prediction are also giving confusing messages, with some saying we are heading out of recession while others aresaying this is just a blip and we will fall further into recession over the coming months.
So who is giving forecasts for 2010 property prices and beyond, and are the likely to be accurate?
For 'prime central London' they predict that if we have no more financial shocks and stock levels continue to match demand, then 2010 will show a 0.6% decrease with 2011 giving an 8% increase. However, if the economy falters and unemployment continues to rise, they believe prices will fall 3.4% in 2010 and then grow by 9% in 2011.
Cluttons (estate agents) Predict a 2% fall in 2010 nationally with 3% increase in central London.
Market Oracle (economist) have revised their predictions for property prices to fall by 3.5% in 2010 and a further fall of 1.5% for 2011, with prices stabilising in 2012.
Capital Economist ( research consultants) are pending that property prices will fall by 10% in 2010 and a further 5% in 2011.
Knight Frank ( estate agents) Predicts prime london residential property prices will grow by 3% in 2010 and to 9% in 2011. They believe it will take the UK, as a whole, until 2014 to match peak property prices achieved in 2007. This means house prices growing by 21.5% over the next six years.
Overall, the forecasts seem to agree to further falls for 2010, ranging from a 3% fall to 10%.
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