House price crash 'unlikely'

Posted: 03 Apr 2008 11:18:22 GMT

An expert has attempted to quash fears that the UK property market is heading for a crash.

An expert has attempted to quash fears that the UK property market is heading for a crash.

Addressing the 20th annual conference of the Chartered Institute of Housing (CIH) Cymru, Sunday Times economics editor David Smith said chances of a recession or house price crash are slim.

He warned against putting too much emphasis on gloomy prospects of the higher costs and lower availability of credit.

Noting the "strong and unusual rise in house prices" during the last decade, Mr Smith predicted that property prices "would have to fall quite a lot before we saw the return of negative equity".

Land Registry figures published earlier this week showed that house prices remained static during February.

A typical UK property now costs £185,616, which is 5.3 per cent higher than the average house price in the same month last year.

The highest price growth was noted in the West Midlands, where the average rose by 1.3 per cent, while Wales saw the "most significant" fall of 1.1 per cent.

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