By early 2009, property values are expected to reduce by a further four to five per cent, according to research from a leading London estate agent.
Agent Kinleigh Folkard & Hayward in 50 offices across the capital, from West Hampstead to Wimbledon and Southgate to Surrey Quays, also predicts there will be little movement in the value of homes in 2009 and 2010.
‘People will always need to move, and as we progress into 2009, I predict we will see a change in the supply to demand ratio for property, and albeit slowly, with increasing levels of activity and transactions as the year progresses,’ says Lee Watts, managing director of Kinleigh Folkard & Hayward.
‘In 2009, we will see a 15% increase in UK sales transactions compared with the previous year. Based on my forecast, there will be 600,000 sales transactions in 2008 and a total of 690,000 in 2009 – still 44% less than in 2007,’ he adds.
Mr Watts says property prices today are more than 20% less than at their peak in the spring and early summer of 2007. ‘Some institutions and commentators have announced falls between nine and 12 %, but I would say that based on London alone, these figures are wildly inaccurate.
‘For instance, our exchange results for last month reflect that average seslling prices in London were down by more than 14% than asking prices and asking prices already have come down by 10% over the last year.’