Property prices to rise, at various speeds

The location of a property will make the difference between its price bouncing back to 2007 levels in just three years, or as much as eight years.

The location of a property will make the difference between its price bouncing back to 2007 levels in just three years, or as much as eight years.

When evaluating the time it would take for prices to rise back up to levels last seen at the height of the property peak in 2007, there also appears to be a definite north-south divide.

While homes in the north may take up to eight years to regain their pre-correction values, those in London and the South East are likely to regain such prices within just three years.

Yolande Barnes, head of Savills residential research, said: "This property market downturn has affected virtually all property sectors and UK regions simultaneously but regions will vary far more when the upturn comes.

"Competition amongst homeowners will once again lead to rising prices, particularly in those areas with higher levels of housing market equity and stronger household purchasing power such as London, the South East and Scotland."

It is likely that prices will rise both significantly and quickly once the correction draws to an end as the housing correction has not yet reduced demand for housing, but simply suppressed it.

If the correction were to end in six months, there will in effect be an 18 month backlog of demand that will push prices up incredibly fast.