Property prices ‘could level out’ in 2009

The coming year may see property prices beginning to level out, it has been predicted, something that may be welcomed by those with mortgages facing the prospect of negative equity.

Royal Institution of Chartered Surveyors (Rics) chief economist Simon Rubinsohn estimated that house values will drop a little further, then start to stabilise as 2009 draws to a close.

But he said that a rise in values is unlikely, as a lack of supply will continue to hold back the property market.

Mr Rubinsohn stated: “I wouldn’t rule out a move up in prices, but I think it is very much dependent on supply remaining quite constrained.”

The latest housing market survey from Rics indicated that activity in the sector improved in April.

Around two-fifths (41 per cent) more surveyors recorded a rise in new buyer enquiries during the period, with this figure rising for the sixth month in a row.

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