UK property prices near 2007 peak

UK property prices are now within 10% of their 2007 peak despite the fact that the UK economy is still struggling. However, it is becoming more and more apparent that the recovery in UK property prices is very fragmented across the UK. London and the South of England have performed better than the North and Scotland although this tends to happen during a recovery phase in the economy.

In order to see a sustained recovery in the UK economy we need to see a recovery in property prices across the whole of the UK to breathe new enthusiasm and confidence into the market. Whether this will happen in the short to medium term remains to be seen as many analysts predict that UK property prices could fall during the second half of 2010. Many issues at the moment are out of the control of the UK government and indeed emanating from Europe and the Far East.

The UK stock market is a very good barometer for the future of the UK economy and the downward pressure we have seen of late is a perfect example of a reduction in confidence. It will be interesting to see how the UK stock market performances in the latter part of 2010 as many believe 2011 could be the year when finally the UK pulls away from the recession.