From This is Money:
The bounce in the market that has seen prices rise by 8.4% since February, on the Nationwide measure, will fall away towards the end of the year, says James Thomas, head of the residential department at Jones Lang LaSalle.
The ‘seemingly irrational’ rise in prices is likely to prove only temporary, according to Thomas, who said a double-dip W-shaped outlook for the market is likely.
He said: ‘The unforeseen and seemingly irrational pick-up in prices has altered the outlook for UK house prices but it is likely that this recovery will prove temporary.
‘The economic fundamentals that have supported the upturn, most notably the constrained supply of housing for sale, will be eroded as unemployment hits a peak and mortgage lending remains weak.
‘While the recent improvement in the market is encouraging, it is impossible to ignore the short-term risks posed to the UK residential sector by rising unemployment and poor credit availability.
‘We anticipate the current market revival t…