Whilst there has been a great deal of speculation with regards to whether recent house price increases in the UK can be sustained over recent months, a report has now suggested that many economists and estate agents are now in agreement that property prices are likely to fall over the course of next year.
House prices have been rising over recent months following eighteen months of falls, but whilst many officials touted this as a sign of recovery many others said that the situation was a temporary one that could not be sustained.
Kate Barker, who is a member of the powerful rate setting Monetary Policy Committee has recently stated that she believes that the house price increases that have been seen over recent months will soon come to an end, adding that she thinks that house price inflation in 2010 will ease off.
She said that she would be very surprised to see house prices increase next year, and said that property prices were more likely to level off and remain pretty steady over the course of 2010.
In the meantime a number of estate agency officials have said that although things may look as though they are improving in the property market at present as a result of recent house price increases there has been a dramatic drop in the number of first time buyers entering the market over recent weeks, and it is likely that over the first half of next year property prices could start to fall again.
Peter Bolton King from the National Association of Estate Agents stated: ‘In recent months the market has witnessed a slight increase in housing prices, driven largely by the fact that, in some markets, demand is outstripping supply. If more property comes onto the market the house price rise will flatten or, in some cases might fall slightly over the first six months of the year.’
