National Housing Federation predicts four years of negative equity |
Homeowners who bought their property at the peak of the property market in 2007, have been warned they will have to wait until 2014 if they want to recover what they paid for their home according to the National Housing Federation.
Their findings are based on forecasts Independent economists Oxford Economics forecast house prices would increase 22% over the next five years ? fuelled by a chronic under supply of new housing. According to the research, house prices will rise 7.5% this year, but will then fall again in 2011 by 3%, before recording a modest increase of 0.9% in 2012.
This is probably difficult news to hear for people who did buy at the peak in 2007. But do remember, that it also means that your next house is also cheaper – if you are moving up the property ladder. Whilst it may be difficult emotionally to sell at a loss; if you have the cash available, you may be able to save yourself money by moving up the ladder sooner, rather than later.