Property prices 'will fall further'
Wednesday, 15 Oct 2008 08:09
Property prices are set to fall further next year
Property prices are 20 per cent lower than at their peak and still have further to fall, according to a London estate agency.
Lee Watts, managing director of London estate agent Kinleigh Folkard & Hayward, blames lenders for the slump in the property market.
"The current market conditions have been brought about by too much money being irresponsibly available over recent years, leading to property prices overheating.
"This has now been compounded by insufficient money being available, combined with a widespread lack of confidence in the government and financial institutions," said Mr Watts.
"Based on our experience across the London market place, property selling prices today are in excess of 20 per cent less than at their peak in the spring/early summer of 2007."
Mr Watts predicts prices will continue to fall next year.
"I believe property values will reduce by a further four to five per cent and we will see this adjustment achieved by early 2009, with very little further movement in values during the remainder of that year and through 2010.
However, people will "always need to move," the estate agent added.
"In 2009, I suggest that we will see a 15 per cent increase in UK sales transactions compared with 2008. Based on my forecast that there will be 600,000 sales transactions in 2008, this reflects a total of 690,000 transactions in 2009 – still 44 per cent less than in 2007."