Difficult year ahead for London house prices

| December 8, 2008 | 0 Comments

Jones Lang LaSalle (JLL) is predicting that UK property prices will decline by between 13% and 15% in 2009.

The international real estate firm expects London to see a steeper than average fall, forecasting a drop in the Greater London area of between 15% and 17%, while in central London homeowners could see 16% to 20% wiped off values.

The company says heavy job losses in the City and Canary Wharf and reduced bonus payments will make next year a difficult one for the capital’s property market.

However, JLL is predicting that the market will begin to recover in 2010 when London could see slight growth, followed by a sharp rise in 2011, of up to 10%.

For the remainder of the UK, 2010 will see a further fall in the average price of a home of between 1% and 3%, according to JLL.

The company’s head of residential research, Neil Chegwidden, is optimistic about the medium-to-long term outlook for UK house prices, pointing out that the market will by buoyed by a widening gap between demand and supply.

In summary, Mr Chegwidden is expecting UK house prices to see a peak-to-trough fall of around 29%, with recovery during 2011 and annual price growth reaching 8% to 9% during 2012 / 2013.

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