PROPERTY market crash predicted by experts this month could see house prices sink to £70,000 in some regions. A crash could take nearly eight years to recover.
A property market crash could see house prices fall to £70,000 in Northern Ireland, and would take seven years and seven months to recover across the country, experts are claiming.
Last time the market crashed, in 2007, it took nearly seven years for the average UK house price to return to its previous peak of £190,000. However, two regions are yet to fully recover at all from the 2007 crash.
If the UK property market were to crash the way it did in 2007, millions of Britons would see the value of their house drop drastically.Londoners would see their property fall in value by £85,592.
The biggest drop in value would effect those in the South East.The average house price in the South East is £315,807, and after a crash today it would be worth £253,327.This is a devaluation of £62,480.
Using data from the Land Registry, eMoov looked at the fall in property prices across each region at their pre-crash peak in 2007 and their lowest point in 2009, before values started to appreciate again.
Using the current average for each region, eMoov then worked out what an identical drop over the same time span would mean today.
Those in London who would see their property price return to normality the quickest.
The slow rate of growth since the last market crash in both the North West and Wales means that the average house price across the two has only recently returned to previous pre-crash levels.
Like Yorkshire and Humber, the slower market recovery since 2009 means that a similar crash today would take nine years and seven months to recover to the current average.
Unfortunately for homeowners in the North East and Northern Ireland, the markets have failed to recover to the levels enjoyed prior to the last crash.
There is no telling if the Northern Irish market will regain strength but a similar crash today could be disastrous and push the average house price as low as £77,378, with the further decline pushing values even further below this.
Founder and CEO of eMoov.co.uk, Russell Quirk, commented: “We are by no means predicting the UK property bubble is about to pop and in fact, other than a potential prolonged flat rate of growth, we believe the market will remain in good stead for the remainder of the year.”
House prices are set to rise again as the number of first-time buyers increased by 10 per cent. Houses could jump in price by three per cent. First-time buyers will be hit even harder by the price hike of five per cent. First-time buyers looking to buy a house at the current average price of £234,794 will be looking to raise an extra £11,739.70.