One property trust manager has admitted it is more difficult to sell property than before, Citywire has reported.
Richard Kirby, director of property at F&C Investments, said he expected the market to return to true value in six to nine months and warned valuations could fall quicker in the first quarter of 2008.
Speaking at the Association of Solicitor and Investment Managers conference he said: " When we try to sell property we are sometimes walking on a tightrope. It has become much harder to sell property."
The outlook for the medium term from F&C was better and returns are expected to pick up to more than six per cent from 2009.
"The market will not recover to its 2004-06 levels. In 2009 we expect it to move towards more sustainable levels and towards the historical norm," Citywire reports him as saying.
Analysis from HSBC claims UK house prices are overvalued by about 30 per cent.