Saturday, September 12, 2009
Rare scrap of bear food
House prices will fall 7% in 2010 once the current 'unsustainable' revival ends, a leading property consultancy has forecast. The bounce in the market, that has seen prices rise by 8.4% since February, will fall away towards the end of the year, says James Thomas, head of the residential department at Jones Lang LaSalle. The 'seemingly irrational' rise in prices is likely to prove only temporary, according to Thomas, who said a double-dip W-shaped outlook for the market is likely. 'While the recent improvement in the market is encouraging, it is impossible to ignore the short-term risks posed to the UK residential sector by rising unemployment and poor credit availability. 'We anticipate the current market revival is unsustainable and predict a further contraction in prices during 2009'