Property Prices for 2010
January 5, 2010
There are many property price predictions doing the rounds currently.
I thought I would share what investors are forecasting for the coming year. Our latest Young Index show that investors forecast 2010 to be a year of consolidation and stability in the residential property market.
Far from the large property price changes foretold at either extreme of the wide ranging predictions made by agents, lenders and economists, the man in the street expects UK house prices to fall by a modest 1.0% during the course of 2010. London, on the other hand, is predicted to perform slightly stronger than the national average by charting a growth of 0.7%.
We directly poll the opinions of property owners – people who own their own homes and also investment properties – and it’s clear that they remain cautiously optimistic, expecting prices to remain relatively unchanged during 2010. Interestingly, Young Index reveals that London is expected to out-perform the rest of the UK and is set to lead the market recovery.
The consolidation indicated by average price expectations is also reflected by the fact that 59% of those questioned are considering purchasing additional residential property assets to rent out within London over the next 12 months, compared to 43% who are looking at opportunities in the UK outside of the capital. This compares to 33% and 8%, respectively, in Q4 2008 and is a continuation of last quarter’s upward trend.
However, again the lack of buy-to-let mortgages is of increasing concern to UK residential landlords, more so than any other aspect of the rental sector. When asked what improvement they would most like to see in 2010, 39% indicated that they long for more buy-to-let finance options. This is a significant increase on the fourth quarter of 2008, when 28% picked the lack of buy-to-let mortgages loans as their major concern.
So let’s see what happens . . .