Distressed assets company predicts property price increases of up to 5% for UK

Written by Ray Clancy

Wednesday, 13 January 2010 09:21

Investors looking for property assets in 2010 could see improved results the second half of the year with prices rising by up to 5%, according to a company that specialises in sourcing undervalued real estate.

Distressed Assets, a Liverpool based property investment and acquisition company is forecasting a positive year for property investment.

Its latest analysis indicates that after the general election, which must be called before June, the main effort of government will be implementing policies to reduce the deficit, balancing reductions in public expenditure with recovery in the economy.

Also it expects that interest rates will remain low, wage demands likewise and unemployment will continue to rise, although at a lower rate than in 2009 and all this bodes well for property.
‘The UK property market will not collapse in 2010. The same pundits who predicted a collapse in 2009 are predicting a collapse of 20% this year. They got it wrong last year and they will be wrong again this year,’ declared Dominic Farrell, a director of Distressed Assets.
‘Given low interest rates, a shortage of supply, economic recovery, albeit weak, and growing confidence amongst business owners, industrialists and bankers, I personally predict a rise in property prices in the UK of up to 5%,’ said Farrell.
He does not agree with recent predictions from economists at the Halifax that property prices will remain flat. But does concur with a report by property website Zoopla that around 81% of people expect house prices to rise during the coming six months, predicting average increases of 5.4%.

‘The two key factors supporting property markets are the availability and cost of finance as well as general consumer confidence. In both cases there have been substantial improvements since this time last year,’ added Farrell.