U.K. House Prices to Fall in 2012 Before Recovery, Barclays Says
U.K. house prices will fall for a second year in 2012 before a “modest recovery” in the following few years, Barclays said.
British home values will decline 0.3 percent this year after slipping 0.2 percent in 2011, London-based Barclays economistChris Crowe said in an e-mailed note to clients today. Prices will rise an average of 4.1 percent annually in the five years through 2016, Crowe said.
“We expect the U.K. housing market to remain anaemic in the near term,” the economist said. “We expect a modest recovery in the next few years as these downwards pressures start to dissipate and prices make up some of the ground lost –- particularly in real terms –- since 2010.”
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