"Only when liquidity returns to the lending markets, and there is a sense that the worst of the recession is over, will the market hit bottom.
"At that point, the combination of lower borrowing rates and falling house prices (anticipated to total -25% from peak 2007 values) will combine to push housing affordability towards record levels, thus cementing the residential market upturn.
"However, while the impact for UK homebuyers will be minimal at best, the December cut triggered a devaluation of sterling, which has in turn stimulated serious international investor interest in prime central London, as low interest rates and falling asset values combine to make property look like a relatively safe haven once again.
"It is too early to state whether this is a trend that will continue, though overseas investors have traditionally been key to the market recovery, with the benefits radiating out from prime central London."
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