'Bumpy landing' for UK housing market
Predictions for the UK housing market greatly differed this week with some analysts forecasting a crash while others predicted a correction.
Link: Advisers to help on property value changes
But a new report out today says the risk of a housing slump in the UK is greater than in any other country across Europe.
Analysis by economists at PricewaterhouseCoopers said there were good prospects for a soft landing in most Euroland countries, but a risk of a bumpy landing is significantly greater in the UK.
The UK, Ireland, the Netherlands and Spain have all experienced house price rises to high levels in relation to income. But PwC economists expect the markets to pan out differently.
In Italy and France the market has grown more moderately, while Germany’s housing market has remained relatively depressed due to excess supply.
John Hawksworth, head of macroeconomics at PwC, said: ‘The chances of a hard landing look somewhat greater in the Netherlands, but the most probable outcome is for house price increases to moderate rather than for prices to fall. This contrasts with the position in the UK, where there are already signs that house prices may be starting to fall.’