The main UK event this year will be the General Election (which must be called before June). After the election the main effort of incoming Government will be balancing reductions in public expenditure with the recovery in the economy by keeping interest rates low, wage demands low and slowing the rate of unemployment.

Dominic Farrell, Director of Distressed Assets says, “The UK property market will not collapse in 2010. The same pundits who predicted a collapse in 2009 are predicting a collapse of 20% this year. 

"They got it wrong last year and they will be wrong again this year. 

"Given low interest rates, a shortage of supply, economic recovery (albeit weak) and growing confidence amongst business owners, industrialists and bankers, I personally predict a rise in property prices in the UK of up to 5%.

“The two key factors supporting property markets are the availability and cost of finance as well as general consumer confidence. In both cases there have been substantial improvements since this time last year.” 

Farrell's views are supported by a recent report by property website Zoopla: “Around 81% of people expect house prices to rise during the coming six months, predicting average increases of 5.4%. The figure is a significant turnaround from a year ago, when only one in five people expected property values to increase during the first half of 2009.”

What We Say ~ we share the view that UK property (even global property), will continue to recover during 2010 and beyond though we hopefully we will see a more steady, sustainable property growth rate than the years before 2007. 

This is good news to property investors who will see their asset steadily increase in value.  The flipside of course, is that each additional property is going to be more expensive to buy.  Using Farrell's prediction for next year for example, a £100,000 property today will cost £105,000 at the end of the year i.e. 5% more. 

Our recent Blog & News "BMV Changes 2010" offered current consideration for BMV purchases in the light of changes in the marketplace and we recommend another read to you.  

 

Our message remains constant.  If you intend adding to your property portfolio and want the best prices, remain active for suitable deals on a weekly if not daily basis.  Call us to discuss your particular needs and remember, we will give you advanced warning via SMS TXT in addition to our normal Property Alert emails if you ask us to. 

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