Opinions split over housing revival

Over the past few months there has been a turnaround in terms of property prices in the UK, and following a long period of house price falls property prices have been increasing again, albeit at a fairly modest rate.

However, whilst some have seen the property price increases as a real positive there are some industry groups and officials that have a different opinion, and have said that the house price falls are only temporary and that they will start to fall again in the near future.

According to one recent report the National Association of Estate Agents has said that that housing market has proven that it is strong enough to survive the traditional slowdown that is generally seen in the summer.

The association reported an increased number of sales and potential buyers for the month of September compared to the previous month. The association said that it was optimistic about the future based on these figures.

However, other industry groups such as the ratings agency Fitch, have said that the revival that has been seen in the property market will not be sustained, and that property prices will start to fall again next year. Officials from the ratings agency have said that as a result of difficult financial and credit conditions property prices could end up falling by a further 17 percent next year.

The agency has predicted that eventually the peak to trough fall for house prices in the UK will come in at a massive 30 percent.

One official from Fitch said: “Despite the fact that a global economic recovery is under way, the economic fundamentals do not auger well for a sustained strong recovery in the UK housing market.”

Tags: house price revival, housing market, house, peak, global economic recovery, conditions property prices, National Association of Estate Agents, agency