Substantial house price fall are predicted by The National Housing Federation on the backdrop of successive house price rises that have increased confidence in the UK housing market.
The National Housing Federation (NHF) that represents not-for-profit housing associations, has produced the surprising forecast for the housing market in England. The group has suggested that house prices would fall sharply this year.
The Nationwide Building Society which this week said there was a “reasonable chance” that prices in the UK could end the year higher than they started 2009.
According to research undertaken by Oxford Economics for NHF, house prices in England will fall by 12.2% this year and a further 4.6% in 2010 before stabilizing in 2011 with a 1.1% rise.
The reversal in 2011 would accelerate in 2012 with a 7.5% increase in prices, the NHF said, followed by rises of 8.4% in 2013 and 6.8% in 2014.
“Our research shows that, while house prices are falling in the short term, they will inevitably increase in the long term because of a fundamental under-supply of housing,” said NHF chief executive David Orr.
Meanwhile Nicholas Leeming, director of propertyfinder.com, said that while house price expectations have remained largely unchanged since June, optimism is higher than ever. But, he said, it is clear that normal conditions will not prevail as long as the underlying threat of unemployment persists
© Housing Market News by The House Shop