Analysis sees property decline as 'comparatively insignificant'

Recent declines in the property market have been put into perspective by a financial expert today.

Simon Rettie, managing director at specialist agency Rettie & Co, said that more ’significant’ losses had been felt in other asset classes in the recent downturn.

The property sector has been hit hard by the credit crunch, with mortgage approvals volumes dropping by up to 60 per cent year on year and house prices falling by over 15 per cent.

However, recent industry signals have suggested that the downturn could be alleviating - Halifax said this week that prices went up by 1.1 per cent in July, bringing the annual rate of decline down to around 12 per cent.

By contrast, the FTSE 100 dropped 35 per cent across 2008, falling from a pre-credit crunch peak of over 6,500 to reach 3,500 in March 2009.

As with property, signs of a market revival have appeared more recently, with the FTSE now trading at over 4,600.

Mr Rettie said: ’In terms of the volatility and the drops in [house] values, if we have dropped by ten to 20 per cent – and it is now looking less than that as the confidence reappears.

’[If you] compare [property] to other asset classes, it isn’t that significant.’ADNFCR-2318-ID-19302441-ADNFCR