Property expert 'happy to rent'

House prices are reported to be rising again in the UK, however, a property professional has questioned whether or not these increases will be sustainable.

In a piece entitled 'Property prices are rising but I'm happy to rent for now' for the Times, Yolande Barnes, director of research at the property company Savills, said house prices were likely to fall over the winter, before remaining stagnant until the end of 2011.

She added that a key problem with the housing market is that "buyers nearly always think the market is about 20 per cent overvalued, while sellers think their home is 20 per cent undervalued".

If sellers continue to refuse to lower their asking price, Britons may find that flats to rent in Blackheath or other parts of London are a more affordable alternative to buying.

This could be particularly true as prices in the capital tend to be higher on average than across the rest of the UK.

And first-time buyers may also find this to be the case, after Nicholas Leeming, director of propertyfinder.com, said such consumers were still getting a "raw deal" in the housing market.

Written by Martyn Glynn

Published 17th September, 2009

© 2009 Estates IT Limited