A lack of power and water could threaten investments in some UAE property developments, it has been claimed. According to Gulf News, a senior federal government official has expressed concerns projects in the northern Emirates could end up without utilities due to planning shortfalls.

Quoted by the site, Hassan Abdullah Al Ghasyah, executive director of Supply at the Federal Electricity and Water Authority (FEWA), said construction in the area was broadly “unplanned”.

According to Gulf News, Mr Al Ghasyah said:

“Local government authorities have not coordinated on precise water and power requirements with Fewa.

“However, according to the cabinet decision, Fewa is committed to a minimum 8 per cent annual growth in power and water demand.”

Around 300 towers in the Ajman, Umm Al Quwain and Ras Al Khaimah areas are thought to be most at risk of the problem. Zawya also reports the Northern Emirates are experiencing an acute gas shortage, while the wider UAE also has less severe shortfall problems.

Iran may provide a source of extra gas supplies, although it is thought the country is afraid of running out itself.

A poll of UK property buyers has revealed most believe the current downturn will last around one to two years. Research from FindaProperty showed 33 per cent of buyers felt the current slump will last about 12 months while 32 per cent said it was more likely to be two.

A further 20 per cent believed the downturn could last even longer. However, buyers also appeared to be confident about the sector’s medium to long-term picture. FindaProperty content editor Michael O’Flynn said:

“The figures here make very interesting reading. The majority think house prices will fall by ten to 15 per cent and on average feel the current problems will last around a year or two.

“According to Nationwide, we have already seen a fall of -4.4 per cent, so the process is already well underway.”

He added most respondents to the poll thought house prices in the UK would be more expensive in five years, suggesting people “still have faith” in the housing market and view it as a good investment.

The survey also asked buyers what measures could be taken to hasten recovery, with suggestions including interest rate cuts, price falls and the abolition of stamp duty. A loosening of lending criteria was seen as the most popular option, gaining 29 per cent of the vote.

Instability in the UK housing market could have been caused by unrealistic home ownership expectations, an expert has said. The Chartered Institute of Housing (CIH) said the UK needed to learn lessons from the US sub-prime lending crisis.

The group also said “insufficient knowledge” of mortgages had also caused millions of Americans to lose their savings and end up with poor credit ratings. CIH chief executive Sarah Webb said:

“The nation often seems obsessed with home ownership.

“While it is important that we help people to fulfil their aspirations, the evidence clearly shows us the state, lenders and individuals must take a responsible stance and make sure they take the right housing choice for them.

“We need to support people to make the best, not the worst, choice. If you are one of the 45,000 people that get their first home repossessed this year then owner occupation won’t have proved to be the route to personal wealth.”

Dr Ian Shepherdson, a commentator on the US economy, recently addressed the CIH annual conference. He forecasted a gloomy outlook for the UK economy, saying the credit crunch was likely to continue well into 2010.