UK investment property is approaching the “bottom of the cycle” a consultancy firm has said, with sales expected to finally pick up again next year.
Cluttons said central London prices will drop further to around 20 to 25 per cent below peak 2007 prices in 2009, and will stabilise in 2010.
The firm added a “window of opportunity” would arise for home buyers and investors with high equity levels and good credit.
Experts also said the lettings market would remain flexible, with rents falling along with demand in 2009.
Richard Cotton of Cluttons said:
“While 2009 will undoubtedly be another turbulent year for London’s property market, with transaction volumes remaining historically low, I believe we are approaching a turning point in terms of price falls.
“There are lots of buyers watching the residential market very closely, and they are desperate not to miss the floor when it arrives.”
He added sellers were now becoming more realistic about “pricing properties to sell” in a slow marketplace.
Multiple buy to let landlords would have plenty of choice homes to go for next year, he added, provided they were in a strong equity position.
Yesterday the head of Barclays bank added to predictions that UK house prices will fall further.
John Varley, speaking to Sky News, said they could dip as low as 30 per cent in total.