The next 12 months could make or break the UK housing market, according to the National Association of Estate Agents – but Shropshire property experts are remaining hopeful of a recovery.

Chief executive of the NAEA, Peter Bolton King, called on lenders to make money available to potential buyers, interest rate cuts to be passed on and a return of consumer confidence to boost the ailing market.

Mr Bolton King said 2009 was likely to be the year the recovery began, with the bounce back possibly just as dramatic as the fall.

“Officially house prices have come down since their peak by around 13 per cent – but speaking to members it seems clear that in some areas at least prices have come down by more than 20 per cent.

Bounce

“We haven’t seen that kind of fall, in such a short period of time, ever before. However it is also clear that parts of the market are perhaps beginning to bottom out, and it seems possible to me that once the recovery begins, we could see a bounce as pronounced as the fall.”

Shropshire estate agent Kevin Boulton, of Strutt & Parker’s Ludlow branch said: “There are mortgage providers with money to lend and liquidity is – albeit slowly – easing. There are also people who are sitting on cash who are beginning to be aware of the bargains that are now on offer.

“Now is definitely a time to upsize, but 2009 is likely to be tough until buyers regain confidence to spend.

“There is still activity and we have seen a 20 per cent increase in viewings since September. A market which in 2008 went down so quickly may come up just as fast. There has never been a better time to trade up.”

However, Mr Bolton King warned of a grim 2009 for the market.

He said: “If things do not improve, then the market could stagnate – and that will have dire implications not only for the thousands of people employed in the profession, but for the economy as a whole.”

By Cathy Stanworth