House Prices to Fall by 11% by 2016

UK house prices are set to fall for another 11% in the next 5 years, according to property experts.

British broker firms believe that house prices in the UK will fall by more than 10% in the next 5 years back to the level seen a decade ago.

In the opinion of property experts, those are not only difficulties accessing mortgage finance and weak economic growth that will keep house prices down. Increased cost of living, especially in big cities like London will also negatively affect house prices growth.

According to brokers' estimates, house prices will fall to 170,000 in 2016, down from  184,000 in 2007.

Meanwhile, rent rates are expected to rise dramatically as many Brits will be unable to buy a property of their own.

Only London property will see growth, not stagnation in the next 5 years. "Central London's residential real estate is increasingly behaving as an asset class, more closely linked to global wealth generation than any domestic indicators," said Yolande Barnes of the brokerage firm.