Property market forecast to ‘recover’ in 15 years
It may take longer than expected for the property market to recover from its current uncertainty, one expert has predicted.
According to Paul Holmes, chief executive of Firstrung, the housing sector will continue to favour buyers over sellers for the next ten years.
Basing his forecast on previous house value falls and rises, he said: "I think the recovery of house prices, if you can call it such a thing, will take 15 years because average wages have to catch up to house prices."
Mr Holmes noted that the availability of cheap credit and fewer mortgage products has dwindled in recent months, which will in turn affect the property market.
He added that house prices will correct by 30 per cent over the next five years.
Yesterday, Nationwide released its latest house price survey and revealed that values are 4.4 per cent lower than they were last year.
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