House prices 'will not return to peak for 5 years'
Property prices are unlikely to return to levels seen in 2007 for at least another five years, one sector commentator has claimed.
A recent report by the Ernst & Young ITEM Club predicted that house prices are likely to stagnate for the next two years, before improving around 2011.
However, with Paul Holmes, chief executive officer of Firstrung, recently stating that the cost of mortgages was "obscene", many Britons may still find flats to rent in Wandsworth and other parts of London a cheaper option than buying, as house prices in the capital tend to be high in comparison to the national average.
Commenting on the Ernst & Young figures, Gary Smith, president of the National Association of Estate Agents, said that next year's general election may also cause house prices to rise at a slower rate.
"If there is a change of government, or even if there isn't a change of government, general elections are normally followed by a tightening of the belts," he explained.
Written by Charles Mackay
Published 16th September, 2009
© 2009 Estates IT Limited
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