UK House Prices on a Long Road to Recovery
House prices in the UK may take 12 years to again reach their 2007 peak, which would be the longest housing market recovery on record.
The forecast from Knight Frank that prices will take until 2019 to reach the heights of the previous housing boom came as it revealed transaction levels have roughly halved since the last market peak in 2007.
Transaction levels are currently 35 percent below the 20 to 30-year average, and Knight Frank predicts transaction levels will rise by only two percent in 2013 and remain well below peak levels until 2020.
Head of Frank Knight’s UK residential research Gráinne Gilmore said first-time buyers and those further up the housing ladder were struggling with tighter mortgage lending rules. “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,” Gilmore said.