Following the credit crunch, house prices across the country fell by around 18%. By the end of 2009 they had begun to grow again but transactions were at only 50% of previous levels.

Therefore, the potential for supply-demand imbalances to drive house prices was far greater than it had been in the previous ten years and the economic outlook remained uncertain. With these circumstances in mind we considered three scenarios and how each might affect house prices.

Interview with Neal Hudson

Key facts:

Job title: Associate Director

Specialisation: Deciphering housing data

Years at Savills: 8

About Neal: I’m perhaps best known via my Twitter alias @resi_analyst where I keep the world amused with charts and maps on the UK housing market.

Q How did we do?

A Scenario 2 has proven prescient. It forecast minimal house price growth for three years followed by a recovery in the economy and lending markets driving price growth in 2013.

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Taken from
25 Years of Savills Residential Research (1989 - 2014)