Decreased Property Values Not That Significant
Monday, August 10, 2009
UK property downturn is relative to other asset types, expert suggests.
By Jenifer Courtney
The property crash of the past 12 months isn't as significant as some investors believe, it has been said.
Simon Rettie, managing director at Rettie & Co, said that the drop in property values "isn't that significant" when compared to the performance of other asset classes.
"People are finishing off what they had and only now, after a year, are they looking to restart, to get back on site and to start afresh," he commented.
"The confidence that was restored in June, July and now into August would suggest that up to a ten per cent reduction for many properties might be the correction we are talking about."
Last month, the Edinburgh Solicitors Property Centre reported that the average property in Edinburgh cost £207,890 in the second quarter of 2009 - up from the £195,895 recorded in the first quarter of the year.
Figures show that the total value of property sales in the north of the country is down by 51.7 per cent year-on-year.
Source: ask-re The Property People LLP
