Long wait ahead for price recovery
UK house prices will not regain their 2007 peak until 2019, say Knight Frank.
They say that although housing transactions will edge up by two per cent next year, sales will remain at well below peak levels for the rest of this decade. Gráinne Gilmore, Knight Frank’s head of UK residential research, said: “Some five years after the start of the financial crisis, the housing sector in the UK still does not bear the hallmarks of a fully functioning market. 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 60 years. Once inflation is stripped out, average UK house prices are unlikely to hit 2007 levels again in real terms until 2031.”