The most bearish comment I've yet heard is from the chartered financial planner Jonathan Davis who in a MoneyBox interview on Radio 4 (December 1st), said:
We had a mania in buy-to-let and we know that those buy-to-letters are now flocking to offload their properties [...] We will see a fall in average prices over, say, 4 to 6 years by between thirty and forty percent. In other words a GBP 250,000 house, I forecast, will fall to GBP 150,000. [...] By the end of next year I see the national average falling between five and ten percent.
Source: [bbc.co.uk ] (Fast-forward to 6:00 minutes in)
The fact is there is a shortage of housing in the UK
I keep hearing this. But I have also read on the BBC, that: "According to The Empty Homes Agency (who?) there are an estimated 870,000 empty homes in the UK and enough empty commercial property to create 420,000 new homes."
So, even discounting the commercial property, is there really a shortage of housing? Or is it just convenient for property speculators to maintain that there is?
Primelocation (October 2007) reports that:
The prime country market is awash with properties for sale, with stock levels up 40.0% on last year and up 5.5% on last month.