A shrill press release from a quick buy property firm claims it could take the housing market almost seven years to recover from a recession.

Headlined ‘Property crash could take almost seven years to reverse’, the release – for House Buyer Bureau – claims that the last time there was a significant housing market downturn, in spring 2008, prices took around five years to return to earlier highs.

However the company claims that prices are hit over half a year before a recession is formally declared – and that if the current downturn eventually becomes a recession, the total period of price falls could be as long as over six and a half years.

The company managing director Chris Hodgkinson says: “The property market is cyclical in nature and we’ve seen time and time again how resilient it can be when it comes to bouncing back following a crash. 

“That’s not to say that patience isn’t required on the part of the nation’s homeowners as historic data shows that should we see a correction in the current market, it may be some years before we return to the heady house price highs spurred by the pandemic property market boom. 

“Of course, it’s important to note that 2008 was a particularly sizeable correction, caused by some extremely irresponsible practices on the part of lenders and so we’re unlikely to see these events replicated in the current landscape. 

“However, we have just enjoyed an extremely prolonged period of record low interest rates with many buyers borrowing beyond their means to climb the ladder. With mortgage rates now on the up, another generation of homeowners are now struggling with the inflated cost of their monthly payments, while many more buyers are finding they simply don’t have the purchasing power they may have had a few months back. 

“While we’re not seeing the same volatile conditions of 2008, this pressure on our household finances is sure to dampen the high rates of house price growth enjoyed since the start of the pandemic.”