UK Prices Set to Fall in 2009

Prices for houses in the UK are predicted to fall even more during 2009, according to the most recent report from Jones Lang LaSalle. The company’s Residential Market Forecast estimates that prices throughout the UK could fall on average 13-15% during the year, and the largest drops will be seen in London.

Jones Lang LaSalle is also predicting that prices may fall even more in the beginning of 2010 before the market sees a recover in 2011 and beyond. Housing price growth for 2011 is estimated to be 4-6%, while it should increase to 8-10% in 2012 and 2013. Central London prices will probably see the largest drop in prices, from 16-20%. The report indicates that the fall in London’s prices will be sharpest in the beginning of 2009 and will ease somewhat by the end of the year.

The head of Jones Lang LaSalle’s Residential Investment team, James Thomas, noted that “There are however some signs that the market is improving, with the Halifax reporting that pries rose in January and with the RICS claiming that buyer inquiries are increasing.”

He continued, “We maintain our view that the housing market’s biggest hit will have been 2008 rather than 2009, both in terms of price falls and turnover. However, we still expect 2009 to be a very poor and troublesome year for the UK housing market.”

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