According to Bloomingberg, UK house prices are more likely than not to fall next year. Furthermore they state that it will be 2014 before house prices get back to the highs of 2007 when the UK was at the peak of its housing boom.
The economists and estate experts surveyed say that the rebound of 2009 was as surprise and highly unlikely to continue into the following year.
Most predict, on average, a 1.6 percent fall in UK house prices:
“The market is still overvalued, whichever measure you use, prices need to fall a further 20 percent to 25 percent to get back their long-term trend.” said Seema Shah of Capital Economics Ltd.
This was quite an extreme view for the survey with this group being the most bearish in their predictions but there is definitely a trend in the report towards thinking property is still well over valued in the UK.
In terms of what this means for landlords, it could be seen as a mixed blessing. While we all like to see the value of our investments growing, a lower price on property gives many a chance to further add to their portfolio. This means that in the long term they will find themselves with a much more valuable collection of property.
In the end it probably comes down to whether you are in property for the long haul. This research once again enforces the point that property is not necessarily the way to go if you are after making a quick buck. Most of us knew that anyway.
