Tuesday 10th June 2008
Analysts have warned that property prices in the UK could fall by as much as half in the next few years.
The figure is reported by the Guardian in light of a recent House Price Index published by financial services provider Halifax.
According to the Guardian, it could take until 2017 for the property market to fully recover and reach the same level that it stands at today.
Statistics cited by the publication indicate that the typical house price could drop by a tenth in 2008 and a similar proportion the following year.
After 2011, a six-year recovery process is anticipated during which values may creep gradually back up.
But at the lowest point in around three years time the news provider warns that a 23.5 per cent slump could emerge.
Incorporating into this the fact that prices have already fallen by eight per cent - as indicated by the Halifax survey - and the effects of inflation, the Guardian reaches an overall real-terms effect of 47.5 per cent.
The publication asserts that the three-year effect is likely to "crush the value" of the typical home in the UK.
Meanwhile, similar figures from global real estate service provider Savills predict a ten per cent slump in the market over the next two years.
However, the organisation suggests that the worst-case scenario for the same period is somewhat bleaker.
Savills explains that its least confident projections for the market would result in a ten per cent slump in 2008 alone and a further 15 per cent fall in value over the following 12 months.
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