London tipped to beat house price falls
Friday, 23 September 2011 3:19 PM
Most residential property professionals expect UK house prices to fall over the next 12
months – except in London where two thirds expect them to rise.
A survey of 800 professionals by estate agent Savills also forecast a rise in interest rates
to 0.8 per cent by Autumn 2012 and 4 per cent by 2016.
Most expect activity levels in the market to improve but they have not ruled out a double
dip.
Lack of finance is seen as the number one threat to the market although 60 per cent
expect private equity funding for housing development and investment to increase.
Meanwhile the private rented sector is seen as moving from niche investment to the
mainstream, with 63 per cent expecting to see more residential investment funds
emerging over the next year.
Yolande Barnes, Savills director of residential research, said: “It would appear that the
case for residential is being made effectively and it is tempting to say that this makes
significant investment in the sector a real possibility during 2012.
“We are not out of the woods yet though. Although the industry is feeling more resilient
than in our 2010 poll and development, investment and other activity is expected to
increase, confidence is fragile.”
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