Another property report from accountants PWC has painted an even more depressing picture of the future of the property market referring to a ‘mini ice age’ until 2020.
The report suggests that, taking into account inflation, prices will not recover to pre-recession peaks until 2020. It suggest that those who bought between 2006-2008 are the main losers having bought at the top of the market and many are now in negative equity i.e. they owe more on a mortgage than the value of the property.
Other losers will be anyone wanting to relocate to London or the South East as prices in those areas are increasing so the gap between the value of the property being sold to relocate is widening compared to the value of the property being bought in those areas.
Mortgages for first time buyers remain problematic with the average deposit required now around 20%.
The reference to a ‘mini ice age’ may be a little over dramatic but the next few years will certainly continue to be difficult for property owners generally.
By residential conveyancing solicitor and Stephensons’ Partner, Tom Bridge
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