Back in 2009 we published the article below.
So how did it turn out. Are we now starting to see the housing market recovery in 2014 that was predicted?
Most are now saying that while there is little or no change, realistically 2019 is the year we will see the prices back to the 2007 peak.
The confidence is still low, and movement is stale, most positives are never more than 3 month spurts, which is not the definition of recovery. So site tight as its here to remain a very slow recovery in the UK
Article 2009…
An economics forecasting group has said that the recent rise in UK house prices is not a full recovery. they claim the recovery is down to a small number of cash-rich buyers.
The Ernst & Young Item Club claimed today that the recovery isn’t going to be as quick as the UK housing market would like to think.They reported “that property values will not return to their 2007 peak for at least another five years. The supply of these funds is limited, which means prices are likely to dip again in the first half of next year.” So if these figures are correct, the UK housing market isn’t due for a full recovery until 2014.
So why a false recovery in 2009? This seems to be down to the shortage of available properties, with many homeowners either trapped in negative equity or reluctant to sell for fear of having to absorb the losses of the past two years.
The report claimed over half of homeowners had a mortgage, meaning that any sustained recovery would have to be underpinned by a recovery in mortgage lending.
Banks are still cautious lenders
Firsts time buyers are struggling to start the housing ladder. A recent report speaks of banks are still being restrictive about the amount of money they were lending. Additionally the possibility of redundancy threats is encouraging buyers to hold purse, just in case.
Mortgage supply and tough lending criteria is making it particularly difficult for first time buyers to enter the market. Due to the likeliness of a first time buyer purchasing a cheaper property, this will have significant implications for those looking to trade up, clogging up the market and limiting the number of property sales.”
The Halifax said “house prices rose by 0.8% in August compared with July – the second monthly rise in a row according to its figures. But the average interest rate on a deal for a borrower offering a 25% deposit rose from 5.68% to 5.72% in August.”
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