Property recovery 'could take 15 years'
Property prices in the UK could take as long as 15 years to recover to their pre-credit crunch levels, it has been suggested.
Once seen as virtually immune to a downturn, even London property has begun falling in value and now Firstrung is predicting that the peak witnessed last year will not be seen for over a decade.
Issuing a particularly gloomy assessment of the market, the first-time buyer mortgage specialist predicted that house prices could fall by as much as 30 per cent over the next five years.
"House prices over the last few years have not been driven by supply and demand but by the availability of cheap credit and that cheap credit has now gone," Firstrung chief executive Paul Holmes explained.
"I think house prices over a five year period will correct by perhaps 30 per cent and in order to recover to the previous boom - arguably November 2007 - it will take a decade or more."
The report will come as bad news for people looking for houses for sale in London, who will have hoped for a swift recovery to the current downturn.
Published 3rd June, 2008
© 2008 Estates IT Limited
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Property prices in the UK could take as long as 15 years to recover to their pre-credit crunch levels, it has been suggested.