Housing recovery 'hinges on credit crunch'
The London property market will not recover until the credit crisis has abated, one leading real estate provider is warning.
With property prices falling for the tenth successive month in July, Savills is now advising customers that the market is unlikely to recover until wider economic stability settles in.
Analysts note that it was last summer's US sub-prime crash that unleashed the crunch - and in the absence of accessible credit they say UK property is likely to remain a troubled sector.
With that in mind, Lucian Cook, director of residential research at the Savills, said that this year's downward house price correction looks set to be even more pronounced than first thought.
Giving his company's official assessment, he warned: "We said that prices will be off by ten per cent year-on-year by the year end this year and there are prospects of further falls next year.
"The market won't recover until the credit crisis has worked itself out and we are back to being able to get hold of lending on more reasonable terms," Mr Cook concluded.
Published 29th July, 2008
© 2008 Estates IT Limited
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The London property market will not recover until the credit crisis has abated, one leading real estate provider is warning.