According to the Cluttons UK housing forecast, issued in May 2009, UK housing prices are predicted to fall by about 12 % in 2009, with the rate of decline decelerating dramatically to just 1% in the fourth quarter of 2009.
Of course, the big question is 2010 for which Cluttons predicts a minimal drop of only 1% with the market actually bottoming in the third quarter of 2010. By that time Cluttons predicts that average UK housing prices will have dropped 26% from their latest peak.
UK housing capital values are predicted to return on the growth path in 2011 and 2012 registering increases of 4% and 8%, respectively, according to Cluttons estimates.
Cluttons points out that they have slightly downgraded their UK housing forecast compared to the previous one because of concerns of the deteriorating economy.
The UK housing market forecast presented by Cluttons, is conditioned an a particular outlook for the UK economy. The major assumptions underlying this economic outlook include a 2.8% GDP contraction in 2009 and 1.2% GDP growth in 2010. Also UK employment is predicted to decline by 4.2% in 2009 and by only 0.8% in 2010. Click here to read the full article and all assumptions underlying this forecast.
