The recovery in UK house prices could be punctuated by a 6.6% drop in values next year, property group Savills has forecast. It expects that after a 3.7% rise in prices this year, there will be peaks and troughs over five years. This would include a notable drop in 2010 as the number of homes on the market outstrips demand. Meanwhile, the National Association of Estate Agents said five buyers are chasing every property at present.
There is widespread agreement among commentators that the lack of people willing to sell at a time when pent-up demand has been released has led to recent increases in prices.
