Stephen Taylor: 'it's a buyers' market'

By Joe Lutrario joe.lutrario@william-reed.co.uk

- Last updated on GMT

Related tags: International monetary fund, Real estate, Macroeconomics

The International Monetary Fund (IMF) has warned that the residential property boom of the last 10 years has left the housing market extremely...

The International Monetary Fund (IMF) has warned that the residential property boom of the last 10 years has left the housing market extremely vulnerable, with homes over-valued by up to 40%.

Average house prices in the UK have tripled since the early 1990s, from £60,000 to £200,000. Some residential agents are reportedly already reducing prices by up to 20%.

A crash or a serious downturn will have a serious impact on the pub property market, with significantly less equity coming from house sales and greatly restricted lending. Lack of confidence in the housing market will lower consumer spending, decreasing turnover and consequently the values of licensed properties.

Stephen Taylor, of Guy Simmonds, said: "There's been a dramatic slow-down and stagnation in the UK housing market that could wipe out all price rises that having taken place over the last five years. It's looking a bit shaky but I maintain, as always, that realistically-priced pubs will still sell.

"One thing is for sure, we're certainly moving towards a buyers' market.

"It's not all doom and gloom, some savvy buyers have anticipated the downturn and released equity from residential property early, and they are in a very strong position."

Graham Allman, of GA-Select, said that warnings and reports are just scare mongering and headline grabbing.

He said: "I don't think there's much justification, it's just a bit of a stall.

"The pub property market will not be badly affected by any disruption. Pub valuation is all about turnover, not the bricks and mortar value, and turnover will be largely unaffected by a crash."

Related topics: Property law

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