The house price crash is now effectively over, an economic consultancy has declared, forecasting that property values will grow between this autumn and the end of next year.
By Edmund Conway (Daily Telegraph) Published: 5:57AM BST 10 Aug 2009
News The average UK house price will grow by 2pc between the fourth quarter of 2009 and the end of 2010, according to the Centre for Economics and Business Research (CEBR). There is a good chance that they will rise even more quickly, thanks to the unprecedented collapse in new homebuilding, it added.
The prediction comes after Halifax reported that house prices rose by 1.1pc in July the second rise in three months. The Royal Institution of Chartered Surveyors, which predicted at the start of the year that prices could fall by some 15pc, also said it now thought that in fact home values could actually increase in 2009.
The CEBR said that prices are likely to fall by a further 3pc throughout the remainder of 2009, which would take the total peak-to-trough fall to around 24pc compared with the third quarter of 2007. However, it said that this was likely to be the full extent of the slide in prices – a smaller total fall than many economists had anticipated when the crash began. Nonetheless, the recovery is likely to be extremely subdued, it added.