The 'bottom' of the house price crash could arrive as early as next summer while the UK base rate is likely to fall to zero, according to property investment firm Assetz.
In its 2009 housing market forecast, the firm suggests there will be substantial increases in property sales in the early months of next year compared with the second half of 2008.
Additionally, it says interest base rates will continue falling into early 2009 - to 1% at the January Monetary Policy Committee meeting and possibly to as low as 0% by spring 2009.
The firm also says bank lending levels will increase in 2009 with a flurry of announcements from banks in the first three months of the year.
"The measures taken by the Government and the Bank of England this year, as well as further measures to be taken in 2009, should ensure the economy suffers a relatively short recession, albeit one with quite a number of side effects," Stuart Law, Assetz chief executive says.
"Ultimately though, the overall impact of the global recession will determine the swiftness of recovery here in the UK."
He adds: "It is not just about mortgage rates but also about the amount of money that is available to borrow. One way or the other, bank lending will increase in 2009, whether it is assisted by the government, the Bank of England or the banks themselves.
"We have already seen HSBC declare a much higher lending target for next year, and I expect to see many other banks follow suit over the Christmas period."IFAonline
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