House prices in the UK; what do you think will happen?!?
I have just finished reading an artice by Neil Woodford (he manages £12 billion at Invesco Perpetual) and he is positioning his funds for a sharp decrease in property prices. His forecast for house prices is for “a 30 to 40 per cent fall over the next three to four years”, a fall he describes as “a healthy correction”. That would bring the average property price from £153,700 today to between £92,200 and £107,600. What do you think will happen to house prices in the UK?
UK house prices have fallen about 10 percent in the last year, and data shows falls continuing to worsen. The government has recently introduced some incentives like a 12 month stamp duty holiday for properties worth less than 175,000, but I would hold off for now until the economy starts to brighten, that should start to push up house prices.
Personally, I reckon prices will fall about 20 to 25% from the peak and stabilise in mid 2009.
For current data on UK property and house prices, http://www.zoopla.co.uk