Fri, 11 Jan 08
The majority of regions in England will see average house prices fall in 2008, according to the latest research from Your Mortgage magazine...
The only regions expected to experience growth this year are London and the North. Inner London is forecast to be the best-performing region of 2008 with an increase of 4.6%. House prices in Greater London will not be far behind, with growth of 4.3%, according to the figures.
The West Midlands, on the other hand, is expected to fare worst of all regions, with house prices set to drop by 3.5%. Birmingham in particular is predicted to suffer a decrease of 3.7%. However, while most areas are expected to see prices fall in 2008, the majority will recover and experience growth in 2009 and beyond.
Things will improve...in 2012!
All regions are expected to have posted improved figures by 2012, although some rises are far more modest than others. Average house prices in Walsall in the West Midlands are only expected to improve by 1.1% by 2012, for example. At the other end of the scale, house prices in Hackney, East London are expected to rise by 30.5% by the time the city hosts the Olympics in 2012.
Pauline McCallion, editor of Your Mortgage, said: Although property values in most areas across England are set to drop by some degree in 2008, prices will recover in 2009. The majority of English homeowners should take comfort in the fact that any decrease is likely to be a distant memory by 2012, as these figures show.
For those homeowners now worried that selling in 2008 might be a foolish idea, all may not be lost. Although these figures can act as a general guide, specific locations may fare better than their regional average. Check out the value of your home with a few estate agents in your area, or visit yourmortgage.co.uk for a postcode sector level prediction.
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