House prices have once again risen in England and Wales by 0.5%, however the overlying trend for the year shows that house prices have dropped by 0.6%.
Most experts are expecting a slow down in the market or a levelling out. However a book by Fred Harrison claims that a property crash will happen in 2010. Entitled ‘From Bust to Boom and Back‘, Mr Harrison identifies an 18-year property cycle which has recurred with remarkable regularity and similarity in different parts of the world under different political, economic and cultural conditions.
In an interview on Radio 5 this morning, Mr Harrison claimed that the recent property rise in London and the South East is ‘the second ripple effect’ and a crash is sure to follow.
Not all is doom and gloom, the book does provide solutions to preventing a decline in the market, by adopting various theories from past economists.
The claim of a crash has been strongly rejected by various property professionals claiming that the demand for housing is simply too high, along with a low interest rate and a stable workforce.
Realistically everyone in the industry believes that the market will slow down, what has to be seen is whether this slow down will lead to a lack of confidence and a crash.
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