South and Scotland will see property recovery by 2012 but not the rest of UK

London and the South East will lead the UK residential property recovery with prices quickly returning to previous levels by 2012 according to consultants Savills.

Scotland will also have recovered by 2012 with growth between 2008 and 2020 averaging 47%, Savills latest research shows.

But the North East of England and Northern Ireland will have to wait until 2016 before there is a full price recovery.

The company's research department has produced a recovery map of the country which forecasts the year in which values will have returned to 2007 levels region by region.

'This property market downturn has affected virtually all property sectors and UK regions simultaneously but regions will vary far more when the upturn comes,' said Yolande Barnes, head of Savills residential research.

'The lack of turnover and new supply which is such a feature of this downturn will be likely to lead to sharp increases in value in high-demand, low supply areas. Competition amongst homeowners will once again lead to rising prices, particularly in those areas with higher levels of housing market equity and stronger household purchasing power such as London, the South East and Scotland,' she added.

The information will be vital to those who may wish to hold onto property rather than sell at the bottom of the market and to those property investors who want to take advantage of the downturn by buying at bargain prices.

'This downturn is severe and will almost certainly last for at least another year. But it is has been caused by the withdrawal of credit, not the withdrawal of long-term demand or by diminished purchasing power amongst owner occupiers' added Barnes.

'It is this that will shape the recovery when it comes. Although the credit crisis has affected all sectors and regions more or less equally and simultaneously, we will see a very different pattern in the recovery. Canny investors will take this into account now.'