falling for 6 straight months. This is on the back of a quantitatively eased economy to the tune of £200 billion and also low interest rates of 0.5%.
OK, so the UK banks are not that interested in lending to consumers at anything other than egregious rates anymore, but still, that is some market support. Instead the market continues to weaken. In 2011 there is no way the UK is not going to at least double its interest rates (saying UK interest rates to move up 0.5% is pretty conservative though, isn't it?).
The market continues to be a phoney market. People can afford their mortgages, they don;t want to sell at reduced prices, so prices stay high and demand is held down too by the lack of mortgage availability.
So in 2011 this position will being to unwind and prices are only going to head lower, possibly as much as 10%; and this will not take into account inflation of say 5% so that real prices will be down something like 15%. This is a good thing overall for our property enthusiastic economy, less so specifically, for those hoping to trade down to buy a pension. I won't be buying any resi property shares like Taylor Wimpey next year either.