Budget 'will not stop property market falls'

Posted: 24 Jun 2010 10:57:28 GMT

The emergency Budget delivered this week by chancellor George Osborne will not stop falls in the UK's property market this year, it has been claimed.

Commenting on the subject, Yolande Barnes from Savills said the politician's announcements reinforce the firm's prognosis that the mainstream real estate market will see a second slip in values over the next 12 to 14 months, PropertyWire reports.

She said: "We anticipated as long ago as the summer of 2009 that the housing market would see further falls in 2010."

The expert added that Mr Osborne's policies have given the company no reason to revise this.

Ms Barnes went on to say that consumer spending is likely to go down and property in the north of the country could suffer the most as some regions will be disproportionately affected.

There are fears among some that the coalition government's decisions over financial policy will result in a double-dip recession as it intends to withdraw substantial amounts of state funding.


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