by Mark Johnston
Savills, the leading global property services company have revised its UK house price forecasts warning that the market is on the brink of further falls following the last 12 months of unsustainable growth.
Savills was established in 1855 and has a rich history of growth and steady success. The global company now has over 200 offices throughout the Americas, Europe, Asia, Pacific, Africa and the Middle East.
They pride themselves on unpressidented sector knowledge that gives their clients access to the highest calibre of property expertise.
The property company have been predicting a slight decline with short term falls followed by a period of low of flat growth but insisted we would not see a repeat of the 2008 property crash where thousands were wiped off of the value of homes.
Back in November 2009 they predicted a fall of around six and a half percent falls in 2010 but how now revised that to only 2.5%. That said, previous predictions for 2011 was a 3% growth and that has been revised to a decline of 1%.
Yolande Barnes, head of residential research at Savills, said: “Values would now need to fall by more than 10% in the second half of the year for our original forecast to stand.
“A fall of this size over such a short time frame looks unlikely. We continue to expect falls, just six months later than our November forecast. That will mean that they will straddle the last six months of this year and the first half of 2011.”
Savills did note that they by felt that by the end of 2011 the growth seen in 2009 would have disappeared and the UK housing market would be back to the same levels seen near the end of 2008 which works out around a 15% loss from peak levels.
The property services firm predict a resurgence of prices in the second half of 2012 and hoped for a growth of 3% with a return to peak levels in 2014.
Barnes said: “For now, the main risk to our forecast is that it will take longer for the two key triggers needed for sustainable house price growth – namely economic recovery and a substantial improvement in mortgage lending – to occur.”
Savills expect that London and the south will lead the recovery as they expect London itself to remain unchanged during the rest of this year and into 2011 will a rally of up to 7.5% growth in 2012 and nearly 10% in 2013.
Barnes said: “We firmly believe that the UK residential markets have seen the worst of the price falls, though lower turnover is expected to be a longer term feature of the market. “For investors, our mantra is clear: seek out quality and invest for the mid to longer term and you will have little to fear from the market.”
Related stories to : Top Property Firm Predict Slow Property Market Recovery