Estate agent eMoov has suggested that the average property in Britain could fall in value by up to £399 per week during the next 21 months, should a crash occur.
The firm forecasts that if some economists’ predictions prove to be correct and the property bubble bursts this year, the average national property value could slide to as low as £180,000.
Of course, this could be good news for buy-to-let investors looking to take out landlord insurance on a property.
eMoov found that the decline in values during the latest crash between the end of 2007 and the start of 2009 resulted in a 16.7% fall in typical values across a 21 month period.
If the same thing were to happen in 2017, property prices would fall by over £36,000.
The research reveals that London property owners would be the hardest hit, should prices fall by 16.3%, the same as in 2007-2009.
As such, the average property owners in the capital would see a loss of £78,000 from their investment’s value in 21 months.
Despite Londoners seeing the highest monetary loss, they did not see the greatest percentage decreases during the last crash.
Instead, these were found in the South East, East, South West, East Midlands and the West Midlands. Average values in these regions all fell by 16.4%.
A similar price fall in 2017 would see the average house price in the South East fall to £258,000. In the East Midlands, values would fall to £146,000 by 2019.
Russell Quirk, founder and chief executive of eMoov, said: ‘Although the UK property market as a whole is faring very well, there are signs that the London market, particularly the prime central end, is running out of steam.’
‘Even so, it unlikely that we will witness a market crash as monumental as the one we experienced a decade ago, so homeowners should rest assured that this research act as a warning of what the worst case scenario might look like,’ Quirk added.