Distressed Assets, a Liverpool based property investment and acquisition company forecasts that the UK property market will rise on average by up to 5% in 2010.
The main event in the UK this year will be the General Election which must be called before June. After the election the main effort of government will be implementing policies to reduce the deficit, balancing reductions in public expenditure with recovery in the economy. In the meantime, interest rates will remain low, wage demands likewise and unemployment will continue to rise, although at a lower rate than in 2009.
Dominic Farrell, a director of Distressed Assets comments that “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%.”
This is further 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.”
Farrell continues, “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.”
