Thursday, September 17, 2009
UK housing recovery "unsustainable"
My old friends at JLL research are predicting that the current recovery in the UK housing market is not going to last, with prices predicted to fall 7% in 2010. Here's what they say:
"Our view is that the present recovery is quite fragile and that at sometime over the next six months housing market sentiment and prices will fall back. This could occur quite naturally or have a trigger event."
The bit about a trigger event is interesting as I too feel that there's still a huge amount of nervousness about both the economy and the housing market.
I don't think it would have to be anything too dramatic (such as a terrorist attack) either...any excuse would do. The next election must be held before 3rd June next year and markets often go totally quiet in the run up.
It's unusual for an estate agent (OK...international property consultancy) to publicly be so bearish but it does make a refreshing change from some of the idiotic comments we've had to listen to over the past few weeks (Things are great, never been so busy, record enquiries etc).