U.K. House Prices to Fall in 2010

Experts are predicting that U.K. home prices could fall as much as 6.6 percent next year, reversing an estimated 3.7 percent gain in 2009, the reason for this will be put down to unemployment deters buyers and more properties going on sale.

Savills, which is Britain’s largest publicly traded commercial real estate adviser, said property values won’t return to their 2007 peak until 2014. Prices rose unexpectedly this year as a shortage of properties available as the number of transactions fell to the lowest in at least 50 years.

Head of residential research at Savills Yolande Barnes said “It’s all about cash, and the true recovery will be credit dependent. Barnes also predicted that mortgage lending will be constrained for about five more years. To read more on this story go to bloomberg.com. What do you think will happen to UK house prices? Let us know your thoughts.