Knight Frank predicts long recovery for UK property market

| November 7, 2012
Knight Frank predicts long recovery for UK property market

UK property prices are unlikely to return to the peak levels seen in 2007, until 2019, according to international property consultancy Knight Frank.

This would represent the longest period between price peaks since records began sixty years ago.

Although property prices in central London have grown substantially, prices for the market as a whole have plummeted since the financial crisis.

There are currently around 50 per cent fewer transactions in the UK housing market than there were in 2007.

Transaction levels are currently around 35 per cent below the 20 to 30 year average.

Gráinne Gilmore, head of UK residential research at Knight Frank said “we do not see average prices reaching their 2007 peak again until 2019 – which would mark the longest period between price peaks in more than sixty years.

Once inflation is stripped out, average UK house prices are unlikely to hit 2007 levels again in real terms until 2031.”

The property consultancy said it expects average prices in London to remain the same next year, and the wider UK market is expected to remain subdued.

Meanwhile, the Bank of Scotland has reported a fall in the number of sales of homes worth £1 million or more.

Across Great Britain, the number of £1 million plus properties sold has fallen by 11 per cent over the past year.

In the first half of the year there were 3,043 million pound property sales, the lowest level since the first half of 2009.

In Scotland, million pound homes sales fell to 51 in the first half of 2012, the lowest level since the first half of 2010.

There are estimated to be around 166,000 homes in Great Britain worth at least one million pounds with London accounting for the largest number of transactions in this price band.

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