UK House Price Predictions for 2009

By
Services for Real Estate Pros with Globrix

Around about this time of year, everybody starts to make their predictions on what they expect 2009 to bring. Well they certainly do here in the UK, and I'd be surprised if it was much different in the US! When it comes to house prices, this years forecasts are of particular interest to EVERYONE.

Just like in the US, 2008 saw a pretty nasty time for UK real estate. Prices dropped dramtically, transactions decreased, and many estate agencies had to close their doors forever. In fact, 32,000 estate agents lost their jobs in 2008, nearly half of the entire estate agent workforce.

But is the worst over in the UK? Or is more bad news set to come?

Predictions for 2009 property prices range from the overly positive to the starkly bleak, Legal & General believe prices won't recover to their recent peaks for a decade. The Telegraph has a round up of predictions, with most agents reaching a consensus that prices will fall around 5-10% over 2009 and then start to pick up again. Most of the newspapers are running with Hometrack's prediction of a 12% price drop over 2009.

Looking back over 2008, our own stats at Globrix have shown that in some parts of the country up to one in four homes are still on the market having not sold all year. In Rochdale, Lancashire, as many as 26% of properties for sale have been stuck on the market waiting for a buyer since the beginning of 2008. Aberystwyth in Wales has also suffered, with 23% of homes for sale failing to find a buyer.

Globrix CEO, Daniel Lee, comments on what we've seen over the past year and how things are starting to look up for the New Year...

"It's been a terrible year for the property market. These end-of-year figures really do bring into sharp focus just how stagnant the property market has been in 2008.The gridlock in the market has been a result of the banks' reluctance to lend and an unwillingness by sellers to lower their asking prices to more realistic levels. Fortunately, in the past few weeks there have been signs that sellers are starting to accept that they need to drop their prices if they are going to attract buyers."

The predictions may differ for how 2009 will play out, but I think everybody can agree that the banks need to lend and sellers need to be realistic if the market is going to stand a good chance of recovery. That's what I think here in London, but I'm sure that message rings true in the US as well.

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Rainer
179,139
Mark MacKenzie
Phoenix, AZ

Hi Poppy,

I don't know the UK market but if it is anything like the US market I do believe this to be true, "Legal & General believe prices won't recover to their recent peaks for a decade"

The credit bubble has burst and there is no going back - this is going to be a long hard road for real estate markets.

Dec 28, 2008 11:35 PM #1
Rainmaker
217,571
Richard Shuman
The Only B.S. I Have is from the University of Massachusetts - Lake Mary, FL
Real Estate Broker - Orlando Area - Love Referrals

thanks for sharing - I figured that was what was happening there too!

Dec 28, 2008 11:42 PM #2
Rainer
4,298
M Starr
Stephen Noah - Briarwood, NY

Very well said and very nicely done. Looking forward to another interesting year. Wishing you the best in all things and looking forward to seeing you in NYC. :-)

Dec 31, 2008 07:53 AM #3
Rainer
62,295
Alix Pinzon
Open Mortgage, LLC NMLS # 2975 - Downey, CA
(562)743-6086

Ya, I caught something about the Real Estate market in England earlier in the year.  Sounds like you're having a bit of a rough ride like US.  With the withering dollar, visiting the US must be a bargain for you?  I've always wanted to ask someone from Britain, how they feel about the Queen?  Not that I have any affection for our government, but being "ruled" by hiearchy, seems a but old fashioned.  I hear that Brits actually like it?  Can you help me on that?

Oct 17, 2009 09:06 PM #4
Rainer
34,860
Poppy Dinsey
Globrix - Anaheim, CA
London, UK

Gregg- The Queen does not rule the UK in any sense, the Royal Family have no real power whatsoever...the British government and EU make the decisions on our country.

Oct 18, 2009 04:45 AM #5
Anonymous
wacken roy

Prices of property in UK have been risen alot after 2009. May this year is the start of booming up of properties in UK. this is the right time to invest in properties. Redstones have many properties for sale in UK and nearby places at reasonable prices. please visit our website to know about properties. http://www.redstones.co.uk

Jun 15, 2010 01:55 AM #6
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Rainer
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Poppy Dinsey

London, UK
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