Housing prices 'were not sustainable'

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Housing prices 'were not sustainable'

Fri 29th Jan 2010

The recent fall in housing prices was inevitable as the high cost of properties seen during the last decade was not sustainable, according to one expert.

Jon Brown, partner relationship manager at online address service iammoving.com, said the 2000s represented an economical merry-go-round which had serious knock-on effects for house prices.

He believes that such a high increase in property prices, when wages did not increase to a comparative degree, could not be sustained and that it is something the industry will have to learn not to repeat.

The comments follow the news from Halifax Building Society that in the last decade the average house price increased by 105 per cent.

With job uncertainty still rife and concerns about the stability of the economy, Mr Brown does not believe there will be increases as dramatic seen any time soon.

But one effect of the recession on the property market could be that there has been an increase in the number of people who are looking to rent their homes rather than buying them outright, he suggested.

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