Peter E, i totally agree with you on every word you say, singing from the same hymn sheet, i am benefiting from paying off thousands from my mortgage every month, but still believe that prices will drop further, Bankers who would trust them now? same category as used car salesmen, & estate agents, all LIARS, lets hope TORIES get in & eventually sort this out, what other hope do we have? we over throw the GOV?

Hype is hype, and banks churn out hype like its going out of fashion, the new year will show the real truth about house prices. im sure people need a job to get a mortgage!

Thats very revolutionary, Marco you should be French! Tories will get in but there is still the Thatcherite tendency there, so beware! Bankers dont give a toss what people think. Houses will go up 5 percent this year accelerating to a new later Boom I suspect around 2016. Really though Marco - you are heading towards the dreaded 50 - all Mortgages should be long gone by then. Mine certainly was. Best to do it ....

Maybe we are all missing the point here, if we continue to throw money at the system thru QE - as we will for some time to come, then house prices in prime hot spots will probably stabilise right here, the pound will continue to fall against most currencies which will attract massive foreign buying of our prime locations such as London. So my view is that house prices in prime locations are great value for all investors - sterling is what will be on the ropes for years to come as we pay thru devaluation and errosion of buying power of our currency for the forseeable future

It has been suggested that we are now going to enter a double dip in recessionary terms. If in fact we are I'd suggest prices may go perhaps down another 10-15%. Why well the market is saturated with apartments all over the country. This makes it a cheap buy. Remember prices are only at a historical low.
Whats the difference between wages and prices? Ths has norrowed slightly but not near enough......
We aree close to the bottom of the market, we are not at the bottom of the market. I reckon if current economics is right then it may be the third quarter next years before we see stabilization and real increases the foillowing year, 2011.

If I was giving advice I'd to a seller I'd say wait. If I was advising a buyer i'd say Buy now, there are no more substantial drops in the market and it may also depend on other local variables as much as the economic state of the country.

Tony i reckon another 15 % at least to come off property, unemployment is still going up, i don't care what GOV figures may suggest, i don't believe them, they put people on stupid courses to try to get the figures down, raising retirement age to distort figures, getting disabled people to work etc, this is a load of Bolony, i'm not having any of it, we haven't seen the worse of this yet i'm afraid, i am waiting for house prices to kepp dropping then i will mop up,

Spot on marco anyone who thinks property prices are going back up has their head in the clouds, early 2011 will be the time to buy, been to a few auctions and prices are pretty good and very tempting, so i have to sit on my hands and play the waiting game, interesting reports on oil that have been posted. have a good day.

Marco prices will not drop any more. But rises will not be great. I think maybe 3 percent all round in 2010. These will ramp up to a new property boom around 2016/17.

Hi Marco, I agree house prices will fall next year at least 10 - 15% see my message 10th Nov. Although we have seen a small hike in prices due to supply and demand (if you can believe our wonderful estate agents, rightmove, gov etc. who have vested interests), we still havn't seen the end of the recession. We still have rising unemployment, home loan rationing, stamp duty returning in January, sharpe falls in buiding society profits as they cannot compete with bailed out banks and to top it all again our wonderful, st-pid greedy bankers have heavily invested in Dubai. Our recession is far from over we are just about to slide down the seconed half of the big "W" which will be long and hard and hopefully correct house prices and get rid of the greedy speculators. Houses should be to live in.

I thought prices were rising, although my children still cannot afford to buy or rent. I estimate a rise of 10% because Estate Agents are GREEDY

In an ideal world Mary House Prices would rise with, and be regulated to, Inflation. Thus each generation would be able to afford the same house. But many forces, speculative, Estate Agents, and Government, prevent this. Prices are rising but it varies a lot by area. My own house - bought Oct 1972 - £6500. Current £245000 Check that against average earnings rise 1972 to 2009 ....

House prices will fall by 7% in 2010 and by 4% in 2011 and will start to rise at the start of 2012 and rise by 3%. Then the spiral will start again 6% 2013, 8% 2014, 15% 2015, 6% 2016???

Any Comments?

Paul F,

I would have comment if you explained the basis of your predictions.

So for somebody who bought a house 2 . 5 years ago, when do you guys think they would go into profit?

Sounds right to me. 12 years of UP followed by 6 years of DOWN. Unless we go Japanese and flat line for 20 years. Buy GOLD on the dips, sit tight for a bumby ride up to $3000/oz or 2014 then switch back to property - maybe. Interest rates will go up, repo's will increase, gold will go up, property will fall.

It is raining, and the little town looks totally deserted. It is tough times, everybody is in debt, and everybody lives on credit.

Suddenly, a rich tourist comes to town... He enters the only hotel, lays a 100 Euro note on the reception counter, and goes to inspect the rooms upstairs in order to choose one.

The hotel proprietor takes the 100 Euro note and runs to pay his debt to the butcher. The butcher takes the 100 Euro note, and runs to pay his debt to the pig grower.

The pig grower takes the 100 Euro note, and runs to pay his debt to the supplier of his feed and fuel...

The supplier of feed and fuel takes the 100 Euro note and runs to pay his debt to the town's prostitute that in these hard times, gave her "services" on credit.

The $%^& runs to the hotel, and pays off her debt with the 100 Euro note to the hotel proprietor to pay for the rooms that she rented when she brought her clients there.

The hotel proprietor then lays the 100 Euro note back on the counter so that the rich tourist will not suspect anything.

At that moment, the tourist comes down after inspecting the rooms, and takes his 100 Euro note, after saying that he did not like any of the rooms, and leaves town.

No one earned anything. However, the whole town is now without debt, and looks to the future with a lot of optimism.....

Thank you Peter.

And absolutely no wealth has been created!!

BTW you did not mention the 'Banker'. He did not get a look in did he?

Nice idea fellow, but it's the road to ruin, just like the one the UK is on, and also, the printing press is tired and running out of ink!!

Merry Christmas

Don't believe the hype, prices are not rising, it's all a spin, GOV at it again, GB wanyts us to fall for his little tricks thinks we're all ponies with no memories, get the Jock out of our Gov, sorry no offence meant to other Jocks, scotsmen, LOL, just can't stand that Fat $%^&, M

I slso believe, like Marco, that house prices are not rising and that it is all hype & spin.
All this hype stems from the people who have a vested interest and will benefit i.e. Estate agents,RICS, Rightmove,Halifax, Nationwide, Gov etc.
House prices in my area are certainly not increasing (East Midlands/ Linconshire). What is happening in London, South West & South East might be a different matter.
Going back to Estate agents & lenders they feel compelled to talk up the market after all it is for their interest and lively hood.(Halifax and Nationwide claim house prices have risen 5.6% & 5.9% in 2009 respectively).
U.K. house prices remain 30% overvalued when compared with rents,according to a highly regarded search engine "The Economist".
They also mention Overvalued Property Markets :- Spain 55%, Hong Kong 53%, Australia 50%, France 40%,Sweden 35%, Iceland 30%, Britain 29%, Canada 20%, Italy 15%.
Undervalued Property Markets are :- US 3%, Switzerland 9%, Germany 15%, Japan 34%.
Another fact of interest is that Bitains house prices are 170% higher than they were in 1997 yet ave earnings are only 55% higher.
I believe markets, including the houseing market, are too depndant on unsustainable government stimuluses.
Unfortunately my friends there is plenty to worry about this year with the current combination of high asset prices, low interest rates and massive fiscal deficits that are unsustainable.
Something has to give this year !!! - taxes are sure to rise which will be followed by higher mortgages and more repossessions probably and I believe will be followed by house prices falls especially later / back end of 2010. Probably 10 - 15% this year and further falls next year. N.b there some economists talking about a 30% correction.

On waht basis are u saying house prices will drop 35% and in which area!

You are all doing what the financial institute wants you all to do. The housing market is the key to our economy and prices will rise! People power will float this country not bankers. Buy buy buy!!! The mortgage rate will rise but level off at around 4.75 %. This will be over the next three years yet house prices will rise by an average in that time of 5.6 - 6%.
Beware all those doubters.

Cojones Steve!! The Market rose so much more for so much longer that a serious correction of at least twice that of 91 to 95 is inevitable. So far the only thing that's stopped it is the printed money, excessive government borrowing and ludicrously low interest rates.

Steve read carefully.

The trilogy will fail, fail and fail again, this year and next.

I'm with the 25-30% drop believers.

Go for Steve: Invest in houses and see where you'll be!!!!

property market it shouldbe how far will the uk fall.look at the pound,the debt.unemployment.