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RICS makes prediction on house prices

July 23, 2009 by admin  
Filed under News, News-Mortgages

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Recently the has made some predictions with regards to house price movement in the UK.

In its report the institute said that by the end of this year should have fallen by around 25 to 30 percent from their peak, back in 2007, and should start to make a gradual recovery. RICS said that improvement in GDP growth and household finances should help the property market to get back on the road to recovery at the end of this year or the start of next.

Officials from RICS said that the property market would most likely bottom out before the end of this year, fuelled by a decline in repossession levels, an increase in mortgage enquiries, and a shortage of properties on the market.

One RICS official said: ‘As new housing stock comes on the market, prices should begin to stabilise towards the end of the year. Activity in the housing market has bottomed, but a recovery from these lows will be modest.’

However, not all predictions are as optimist as those made by RICS. The Economist Intelligence Unit stated recently that the housing market would not improve that quickly, and the downturn could last another two years before any sort of recovery begins. Its report stated that the lack of finance available to households was playing a large part in driving house prices down, despite intervention by the government.

The report stated: ‘This, in turn, is aggravating a severe downturn in the housing market, which may not reach bottom until 2010 or 2011.’

There have been further mixed reviews and predictions with regards to house price movement and the most likely time that the market will start to recover.

Tags: intervention, RICS, downturn, Royal Institute of Chartered Surveyors, house prices

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