Property Market Predictions for 2012

Online, January 21, 2012 (Newswire.com) - Since the 2008 crash, the property market has struggled to gain momentum, and with instability in world markets and a gloomy outlook for the UK economy, things seem set to remain tough for the property market in 2012.

The Royal Institute of Chartered Surveyors (RICS) has just released its 2012 forecast, which predicts a 3% fall in property prices this year, saying: "Sales of homes may rise a little over the coming year but prices will struggle to follow suit."

If you're nearing retirement or are already retired, you may have been considering downsizing or releasing equity from your property. Many people opt to do this to support their day-to-day finances, enjoy their retirement, or to make home improvements so they can spend the rest of their days in the house they always wanted. But with prices set to fall, is it the right time to make decisions about downsizing or equity release?

The Centre for Economic and Business Research (CEBR) has been looking at the long term picture. Economists at CEBR predict that house prices will rise by 15 per cent over the next five years, as a shortage of affordable housing will push up demand. But don't start celebrating yet. Even if house prices did rise this much over the next few years, the 2.8% average annual rise is nowhere near that seen in the 20 years prior to 2008, and any gains made against household income may well be counteracted by rising inflation and living costs.

Famously outspoken economist and investment manager, David Kauders, does not share these views, suggesting that the current downturn is the start of "a slow-motion crash [like that seen in Japan] - so slow that many commentators will not even see it. They will observe only the shorter-term trends."

With such uncertainty, it is important that anyone who is making a major financial decision should carefully consider their options and ensure they seek expert impartial advice.

The Retirement Centre is an independent company, designed to help the over 50s, or individuals already in retirement, to make the most out of their life after work. For unbiased money advice to help you make the best choices and enjoy a financially secure retirement, visit The Retirement Centre website at: http://theretirementcentre.com/about-us

For more information, call Dominic Fraser-Smith on 0113 320 5595 or email [email protected]