Downturn twice as severe as 1990s
Property investors aiming to refinance their loans face increasing pressure as values remain around a third below those seen at the peak, according to the IPD.
Speaking to EGi following the release of the IPD/IPF UK Q1 Quarterly Briefing, Phil Tily, IPD’s UK and Ireland managing director, said that the current downturn is twice as severe as the decline in the market during the 1990s.
Tily said: "Q1’s results show a second consecutive quarter of falling values, so technically, like the economy, the property market entered recession.
"But it does come off the back of two years of improving values and returns did remain positive for the quarter , offset by a 1.5% income return."
Tily added that high yielding secondary property has now experienced six quarters of falling values.
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