| It could be 2016 before house prices recover to the | | | | A director of residential research at Savills, claims the |
| levels they reached at their height last year, | | | | type of recovery will be very different around the |
| according to researchers. The findings by Savills will | | | | country as a result of various factors including |
| be bad news for Britons who purchased houses | | | | employment in the different regions, the salary level |
| recently and could face living in negative equity for a | | | | and general confidence about the economy. She |
| period of up to eight years. As their mortgages will | | | | blamed the downturn on 'the lack of mortgage |
| be higher than the value of their homes, they will be | | | | finance', because buyers have been unable to get a |
| stuck in properties they cannot afford to sell. | | | | cheap loan - especially young people without a |
| Another report revealed one in ten homeowners | | | | deposit. On a more positive note, she stated that the |
| might be in negative equity by next year. Research | | | | current crisis will be 'all forgotten by 2020' with prices |
| by the Sanford Bernstein bank showed house prices | | | | rocketing again. |
| could plummet as much as 35 per cent from their | | | | Overall, Savills estimates average house prices in |
| peak last summer. A fall of that magnitude would | | | | 2020 to be almost 50 per cent higher than last year's |
| burden 11 per cent of the total, equivalent to 1.3 | | | | peak - at an average of 323,240 ponds. This means |
| million households, with mortgages valued at more | | | | prices will be more than 100,000 pounds higher than |
| than the price of their home. | | | | in 2007 when the average cost was 220,000 pounds. |
| The forecast by Savills was less grim, with the | | | | After the recent barrage of bad news, this prediction |
| estate agents predicting a drop of 25 per cent on | | | | will offer some relief to those who had thought that |
| last year's peak by the end of 2009. It believes | | | | a recovery might never happen. |
| prices will recover in the end, but when exactly this | | | | The prediction that prices will continue to fall until the |
| will happen will depend on where you live. | | | | end of 2009 will prevent more people from investing |
| In the South-East and Scotland, prices are forecast | | | | in the housing market. Official figures from HM |
| to return to their peak 2007 levels in 2012. The | | | | Revenue and Customs revealed the amount of |
| South-West, London, the East of England and East | | | | people buying a home has collapsed. |
| Midlands will achieve this in 2013, the West Midlands in | | | | Even with the temporary stamp duty holiday on |
| 2014 and for Wales, the North-West and Yorkshire | | | | homes purchased for less than 175,000 pounds, |
| this is predicted to happen in 2015. Other parts of the | | | | waiting to buy would save more money for many. A |
| country will be in for a much longer wait, with | | | | home bought when the duty suspension ends in a |
| home-owners in the North-East and Northern Ireland | | | | year's time may turn out to be less expensive than a |
| not predicted to see a recovery until 2016. | | | | home purchased today with no stamp duty bill. |