UK housing market should expect further falls

The UK is likely to see further house price falls, similar to other markets around the world.

That is the opinion of Jonathan Davis, managing director of chartered financial planners Armstrong Davis Ltd.

He claims that the explosion in the buy-to-let market artificially inflated demand within the housing market, driving prices up to unsustainable levels.

Mr Davis also warned that it would take many years for the housing market in the UK to recover, due to 15 years of high price growth. He said: “House prices have been falling across the world – in California, Florida, Ireland, Spain and others – and I see no reason why the UK should be any different.

“There simply isn’t the finance available in the market at the moment and I don’t see a single indicator that the UK economy is different from anywhere else.”

However, many other economic commentators have argued that the UK is safe from significant house price falls, as the market is still experiencing a shortage of supply combined with excessive demand.

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