The residential property sector is facing some tough challenges over the next twelve months, with RICS research predicting a ten per cent fall in British house prices in 2009.

The recovery of the market will be strongly influenced by the methods the government employs to rescue and support the sector. Government funding for the public sector purchase of private sector properties will, no doubt, achieve its aim of helping to prevent developers from going bust. However, creation of lending for the private sector to purchase private sector properties should be given strong focus.

We need to see the confident return of lenders, dropping their currently cautious guard and boosting the availability of mortgage finance.

If this can be achieved, then I think we can be assured of an increase in house sales this year. There are plenty of bargains out there for buyers with cash or confirmed funding and, as the mortgage situation improves, so will the sector as a whole.

There are also significant opportunities available for developers, but they will only be maximised if they can build sound products at a good price, help purchasers buy them and design out management issues to keep service charges lower.

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