Standard & Poor’s: Outside UK, Europe's Housing Markets Still Gloomy

While rising prices signal that the U.K. housing market may have reached a bottom, it's unlikely to bounce back sharply, according to one of the world’s leading rating agencies.

"Of all Europe's housing markets, that in the U.K. appears the most positive, in our view," said Jean-Michel Six, Standard & Poor's chief economist for Europe.

"The upward momentum in U.K. house prices recorded since April 2009 suggests that the slump that began in August 2007 might have reached an end. In other words, the market found a bottom in the second quarter and is now on the way to recovery.”

Six noted however, the current upturn is unlikely to morph into a full-fledged upward cycle any time soon.

Standard & Poor’s believes very contradictory sets of factors will continue to influence the U.K. housing market: A supply shortage that's only going to get worse in the next couple of years; and high unemployment, highly leveraged households, and credit rationing that will make any upswing in prices difficult to sustain.

“In our opinion, the outcome will be essentially flat prices on a 12-month basis by the end of this year, with about a 3%-4% rise next year."

Downside risk, however, is significant.

The market remains expensive, so first-time buyers, who typically fuel long-term growth, may have to stay on the sidelines for another year. In that case, U.K. house prices could resume their descent at the end of this year, to hit a trough by the third quarter of next year. By then, they could be down 30% from their August 2007 peak.

In European housing markets, signs of bottoming out similar to that of the U.K. remain difficult to find.

With rising unemployment and low wage growth trimming back earnings growth in Spain, for example, market fundamentals are little improved over the past 12 months.

Furthermore, conditions in the Spanish housing market continue to reflect a significant oversupply, a situation that market commentators believe may take six or seven years to unwind. As a result, the Spanish market appears poised for an extended period of adjustment, with prices declining until 2012, according to Standard & Poors.

Ireland's property market also remains depressed.

Between February 2007, when the market peaked, and July 2009, prices have fallen by 24%. Oversupply is proportionally less dramatic in Ireland than in Spain, but it is nevertheless a significant factor bearing on market prices. Here, market estimates indicate that the excess supply should start to gradually reduce from the end of this year. For now, Standard & Poor’s continue to anticipate an overall house price decline in Ireland of 13% in 2009 and a further dip in 2010.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Between February 2007, when the market peaked, and July 2009, prices have fallen by 24%. Oversupply is proportionally less dramatic in Ireland than in Spain, but it is nevertheless a significant factor bearing on market prices. Here, market estimates indicate that the excess supply should start to gradually reduce from the end of this year. For now, Standard & Poor’s continue to anticipate an overall house price decline in Ireland of 13% in 2009 and a further dip in 2010.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Furthermore, conditions in the Spanish housing market continue to reflect a significant oversupply, a situation that market commentators believe may take six or seven years to unwind. As a result, the Spanish market appears poised for an extended period of adjustment, with prices declining until 2012, according to Standard & Poors.

Ireland's property market also remains depressed.

Between February 2007, when the market peaked, and July 2009, prices have fallen by 24%. Oversupply is proportionally less dramatic in Ireland than in Spain, but it is nevertheless a significant factor bearing on market prices. Here, market estimates indicate that the excess supply should start to gradually reduce from the end of this year. For now, Standard & Poor’s continue to anticipate an overall house price decline in Ireland of 13% in 2009 and a further dip in 2010.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Between February 2007, when the market peaked, and July 2009, prices have fallen by 24%. Oversupply is proportionally less dramatic in Ireland than in Spain, but it is nevertheless a significant factor bearing on market prices. Here, market estimates indicate that the excess supply should start to gradually reduce from the end of this year. For now, Standard & Poor’s continue to anticipate an overall house price decline in Ireland of 13% in 2009 and a further dip in 2010.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

With rising unemployment and low wage growth trimming back earnings growth in Spain, for example, market fundamentals are little improved over the past 12 months.

Furthermore, conditions in the Spanish housing market continue to reflect a significant oversupply, a situation that market commentators believe may take six or seven years to unwind. As a result, the Spanish market appears poised for an extended period of adjustment, with prices declining until 2012, according to Standard & Poors.

Ireland's property market also remains depressed.

Between February 2007, when the market peaked, and July 2009, prices have fallen by 24%. Oversupply is proportionally less dramatic in Ireland than in Spain, but it is nevertheless a significant factor bearing on market prices. Here, market estimates indicate that the excess supply should start to gradually reduce from the end of this year. For now, Standard & Poor’s continue to anticipate an overall house price decline in Ireland of 13% in 2009 and a further dip in 2010.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Between February 2007, when the market peaked, and July 2009, prices have fallen by 24%. Oversupply is proportionally less dramatic in Ireland than in Spain, but it is nevertheless a significant factor bearing on market prices. Here, market estimates indicate that the excess supply should start to gradually reduce from the end of this year. For now, Standard & Poor’s continue to anticipate an overall house price decline in Ireland of 13% in 2009 and a further dip in 2010.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Furthermore, conditions in the Spanish housing market continue to reflect a significant oversupply, a situation that market commentators believe may take six or seven years to unwind. As a result, the Spanish market appears poised for an extended period of adjustment, with prices declining until 2012, according to Standard & Poors.

Ireland's property market also remains depressed.

Between February 2007, when the market peaked, and July 2009, prices have fallen by 24%. Oversupply is proportionally less dramatic in Ireland than in Spain, but it is nevertheless a significant factor bearing on market prices. Here, market estimates indicate that the excess supply should start to gradually reduce from the end of this year. For now, Standard & Poor’s continue to anticipate an overall house price decline in Ireland of 13% in 2009 and a further dip in 2010.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Between February 2007, when the market peaked, and July 2009, prices have fallen by 24%. Oversupply is proportionally less dramatic in Ireland than in Spain, but it is nevertheless a significant factor bearing on market prices. Here, market estimates indicate that the excess supply should start to gradually reduce from the end of this year. For now, Standard & Poor’s continue to anticipate an overall house price decline in Ireland of 13% in 2009 and a further dip in 2010.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

In European housing markets, signs of bottoming out similar to that of the U.K. remain difficult to find.

With rising unemployment and low wage growth trimming back earnings growth in Spain, for example, market fundamentals are little improved over the past 12 months.

Furthermore, conditions in the Spanish housing market continue to reflect a significant oversupply, a situation that market commentators believe may take six or seven years to unwind. As a result, the Spanish market appears poised for an extended period of adjustment, with prices declining until 2012, according to Standard & Poors.

Ireland's property market also remains depressed.

Between February 2007, when the market peaked, and July 2009, prices have fallen by 24%. Oversupply is proportionally less dramatic in Ireland than in Spain, but it is nevertheless a significant factor bearing on market prices. Here, market estimates indicate that the excess supply should start to gradually reduce from the end of this year. For now, Standard & Poor’s continue to anticipate an overall house price decline in Ireland of 13% in 2009 and a further dip in 2010.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Between February 2007, when the market peaked, and July 2009, prices have fallen by 24%. Oversupply is proportionally less dramatic in Ireland than in Spain, but it is nevertheless a significant factor bearing on market prices. Here, market estimates indicate that the excess supply should start to gradually reduce from the end of this year. For now, Standard & Poor’s continue to anticipate an overall house price decline in Ireland of 13% in 2009 and a further dip in 2010.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Furthermore, conditions in the Spanish housing market continue to reflect a significant oversupply, a situation that market commentators believe may take six or seven years to unwind. As a result, the Spanish market appears poised for an extended period of adjustment, with prices declining until 2012, according to Standard & Poors.

Ireland's property market also remains depressed.

Between February 2007, when the market peaked, and July 2009, prices have fallen by 24%. Oversupply is proportionally less dramatic in Ireland than in Spain, but it is nevertheless a significant factor bearing on market prices. Here, market estimates indicate that the excess supply should start to gradually reduce from the end of this year. For now, Standard & Poor’s continue to anticipate an overall house price decline in Ireland of 13% in 2009 and a further dip in 2010.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Between February 2007, when the market peaked, and July 2009, prices have fallen by 24%. Oversupply is proportionally less dramatic in Ireland than in Spain, but it is nevertheless a significant factor bearing on market prices. Here, market estimates indicate that the excess supply should start to gradually reduce from the end of this year. For now, Standard & Poor’s continue to anticipate an overall house price decline in Ireland of 13% in 2009 and a further dip in 2010.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

With rising unemployment and low wage growth trimming back earnings growth in Spain, for example, market fundamentals are little improved over the past 12 months.

Furthermore, conditions in the Spanish housing market continue to reflect a significant oversupply, a situation that market commentators believe may take six or seven years to unwind. As a result, the Spanish market appears poised for an extended period of adjustment, with prices declining until 2012, according to Standard & Poors.

Ireland's property market also remains depressed.

Between February 2007, when the market peaked, and July 2009, prices have fallen by 24%. Oversupply is proportionally less dramatic in Ireland than in Spain, but it is nevertheless a significant factor bearing on market prices. Here, market estimates indicate that the excess supply should start to gradually reduce from the end of this year. For now, Standard & Poor’s continue to anticipate an overall house price decline in Ireland of 13% in 2009 and a further dip in 2010.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Between February 2007, when the market peaked, and July 2009, prices have fallen by 24%. Oversupply is proportionally less dramatic in Ireland than in Spain, but it is nevertheless a significant factor bearing on market prices. Here, market estimates indicate that the excess supply should start to gradually reduce from the end of this year. For now, Standard & Poor’s continue to anticipate an overall house price decline in Ireland of 13% in 2009 and a further dip in 2010.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Furthermore, conditions in the Spanish housing market continue to reflect a significant oversupply, a situation that market commentators believe may take six or seven years to unwind. As a result, the Spanish market appears poised for an extended period of adjustment, with prices declining until 2012, according to Standard & Poors.

Ireland's property market also remains depressed.

Between February 2007, when the market peaked, and July 2009, prices have fallen by 24%. Oversupply is proportionally less dramatic in Ireland than in Spain, but it is nevertheless a significant factor bearing on market prices. Here, market estimates indicate that the excess supply should start to gradually reduce from the end of this year. For now, Standard & Poor’s continue to anticipate an overall house price decline in Ireland of 13% in 2009 and a further dip in 2010.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Between February 2007, when the market peaked, and July 2009, prices have fallen by 24%. Oversupply is proportionally less dramatic in Ireland than in Spain, but it is nevertheless a significant factor bearing on market prices. Here, market estimates indicate that the excess supply should start to gradually reduce from the end of this year. For now, Standard & Poor’s continue to anticipate an overall house price decline in Ireland of 13% in 2009 and a further dip in 2010.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Six noted however, the current upturn is unlikely to morph into a full-fledged upward cycle any time soon.

Standard & Poor’s believes very contradictory sets of factors will continue to influence the U.K. housing market: A supply shortage that's only going to get worse in the next couple of years; and high unemployment, highly leveraged households, and credit rationing that will make any upswing in prices difficult to sustain.

“In our opinion, the outcome will be essentially flat prices on a 12-month basis by the end of this year, with about a 3%-4% rise next year."

Downside risk, however, is significant.

The market remains expensive, so first-time buyers, who typically fuel long-term growth, may have to stay on the sidelines for another year. In that case, U.K. house prices could resume their descent at the end of this year, to hit a trough by the third quarter of next year. By then, they could be down 30% from their August 2007 peak.

In European housing markets, signs of bottoming out similar to that of the U.K. remain difficult to find.

With rising unemployment and low wage growth trimming back earnings growth in Spain, for example, market fundamentals are little improved over the past 12 months.

Furthermore, conditions in the Spanish housing market continue to reflect a significant oversupply, a situation that market commentators believe may take six or seven years to unwind. As a result, the Spanish market appears poised for an extended period of adjustment, with prices declining until 2012, according to Standard & Poors.

Ireland's property market also remains depressed.

Between February 2007, when the market peaked, and July 2009, prices have fallen by 24%. Oversupply is proportionally less dramatic in Ireland than in Spain, but it is nevertheless a significant factor bearing on market prices. Here, market estimates indicate that the excess supply should start to gradually reduce from the end of this year. For now, Standard & Poor’s continue to anticipate an overall house price decline in Ireland of 13% in 2009 and a further dip in 2010.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Between February 2007, when the market peaked, and July 2009, prices have fallen by 24%. Oversupply is proportionally less dramatic in Ireland than in Spain, but it is nevertheless a significant factor bearing on market prices. Here, market estimates indicate that the excess supply should start to gradually reduce from the end of this year. For now, Standard & Poor’s continue to anticipate an overall house price decline in Ireland of 13% in 2009 and a further dip in 2010.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Furthermore, conditions in the Spanish housing market continue to reflect a significant oversupply, a situation that market commentators believe may take six or seven years to unwind. As a result, the Spanish market appears poised for an extended period of adjustment, with prices declining until 2012, according to Standard & Poors.

Ireland's property market also remains depressed.

Between February 2007, when the market peaked, and July 2009, prices have fallen by 24%. Oversupply is proportionally less dramatic in Ireland than in Spain, but it is nevertheless a significant factor bearing on market prices. Here, market estimates indicate that the excess supply should start to gradually reduce from the end of this year. For now, Standard & Poor’s continue to anticipate an overall house price decline in Ireland of 13% in 2009 and a further dip in 2010.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Between February 2007, when the market peaked, and July 2009, prices have fallen by 24%. Oversupply is proportionally less dramatic in Ireland than in Spain, but it is nevertheless a significant factor bearing on market prices. Here, market estimates indicate that the excess supply should start to gradually reduce from the end of this year. For now, Standard & Poor’s continue to anticipate an overall house price decline in Ireland of 13% in 2009 and a further dip in 2010.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

With rising unemployment and low wage growth trimming back earnings growth in Spain, for example, market fundamentals are little improved over the past 12 months.

Furthermore, conditions in the Spanish housing market continue to reflect a significant oversupply, a situation that market commentators believe may take six or seven years to unwind. As a result, the Spanish market appears poised for an extended period of adjustment, with prices declining until 2012, according to Standard & Poors.

Ireland's property market also remains depressed.

Between February 2007, when the market peaked, and July 2009, prices have fallen by 24%. Oversupply is proportionally less dramatic in Ireland than in Spain, but it is nevertheless a significant factor bearing on market prices. Here, market estimates indicate that the excess supply should start to gradually reduce from the end of this year. For now, Standard & Poor’s continue to anticipate an overall house price decline in Ireland of 13% in 2009 and a further dip in 2010.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Between February 2007, when the market peaked, and July 2009, prices have fallen by 24%. Oversupply is proportionally less dramatic in Ireland than in Spain, but it is nevertheless a significant factor bearing on market prices. Here, market estimates indicate that the excess supply should start to gradually reduce from the end of this year. For now, Standard & Poor’s continue to anticipate an overall house price decline in Ireland of 13% in 2009 and a further dip in 2010.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Furthermore, conditions in the Spanish housing market continue to reflect a significant oversupply, a situation that market commentators believe may take six or seven years to unwind. As a result, the Spanish market appears poised for an extended period of adjustment, with prices declining until 2012, according to Standard & Poors.

Ireland's property market also remains depressed.

Between February 2007, when the market peaked, and July 2009, prices have fallen by 24%. Oversupply is proportionally less dramatic in Ireland than in Spain, but it is nevertheless a significant factor bearing on market prices. Here, market estimates indicate that the excess supply should start to gradually reduce from the end of this year. For now, Standard & Poor’s continue to anticipate an overall house price decline in Ireland of 13% in 2009 and a further dip in 2010.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Between February 2007, when the market peaked, and July 2009, prices have fallen by 24%. Oversupply is proportionally less dramatic in Ireland than in Spain, but it is nevertheless a significant factor bearing on market prices. Here, market estimates indicate that the excess supply should start to gradually reduce from the end of this year. For now, Standard & Poor’s continue to anticipate an overall house price decline in Ireland of 13% in 2009 and a further dip in 2010.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

In European housing markets, signs of bottoming out similar to that of the U.K. remain difficult to find.

With rising unemployment and low wage growth trimming back earnings growth in Spain, for example, market fundamentals are little improved over the past 12 months.

Furthermore, conditions in the Spanish housing market continue to reflect a significant oversupply, a situation that market commentators believe may take six or seven years to unwind. As a result, the Spanish market appears poised for an extended period of adjustment, with prices declining until 2012, according to Standard & Poors.

Ireland's property market also remains depressed.

Between February 2007, when the market peaked, and July 2009, prices have fallen by 24%. Oversupply is proportionally less dramatic in Ireland than in Spain, but it is nevertheless a significant factor bearing on market prices. Here, market estimates indicate that the excess supply should start to gradually reduce from the end of this year. For now, Standard & Poor’s continue to anticipate an overall house price decline in Ireland of 13% in 2009 and a further dip in 2010.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Between February 2007, when the market peaked, and July 2009, prices have fallen by 24%. Oversupply is proportionally less dramatic in Ireland than in Spain, but it is nevertheless a significant factor bearing on market prices. Here, market estimates indicate that the excess supply should start to gradually reduce from the end of this year. For now, Standard & Poor’s continue to anticipate an overall house price decline in Ireland of 13% in 2009 and a further dip in 2010.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Furthermore, conditions in the Spanish housing market continue to reflect a significant oversupply, a situation that market commentators believe may take six or seven years to unwind. As a result, the Spanish market appears poised for an extended period of adjustment, with prices declining until 2012, according to Standard & Poors.

Ireland's property market also remains depressed.

Between February 2007, when the market peaked, and July 2009, prices have fallen by 24%. Oversupply is proportionally less dramatic in Ireland than in Spain, but it is nevertheless a significant factor bearing on market prices. Here, market estimates indicate that the excess supply should start to gradually reduce from the end of this year. For now, Standard & Poor’s continue to anticipate an overall house price decline in Ireland of 13% in 2009 and a further dip in 2010.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Between February 2007, when the market peaked, and July 2009, prices have fallen by 24%. Oversupply is proportionally less dramatic in Ireland than in Spain, but it is nevertheless a significant factor bearing on market prices. Here, market estimates indicate that the excess supply should start to gradually reduce from the end of this year. For now, Standard & Poor’s continue to anticipate an overall house price decline in Ireland of 13% in 2009 and a further dip in 2010.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

With rising unemployment and low wage growth trimming back earnings growth in Spain, for example, market fundamentals are little improved over the past 12 months.

Furthermore, conditions in the Spanish housing market continue to reflect a significant oversupply, a situation that market commentators believe may take six or seven years to unwind. As a result, the Spanish market appears poised for an extended period of adjustment, with prices declining until 2012, according to Standard & Poors.

Ireland's property market also remains depressed.

Between February 2007, when the market peaked, and July 2009, prices have fallen by 24%. Oversupply is proportionally less dramatic in Ireland than in Spain, but it is nevertheless a significant factor bearing on market prices. Here, market estimates indicate that the excess supply should start to gradually reduce from the end of this year. For now, Standard & Poor’s continue to anticipate an overall house price decline in Ireland of 13% in 2009 and a further dip in 2010.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Between February 2007, when the market peaked, and July 2009, prices have fallen by 24%. Oversupply is proportionally less dramatic in Ireland than in Spain, but it is nevertheless a significant factor bearing on market prices. Here, market estimates indicate that the excess supply should start to gradually reduce from the end of this year. For now, Standard & Poor’s continue to anticipate an overall house price decline in Ireland of 13% in 2009 and a further dip in 2010.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Furthermore, conditions in the Spanish housing market continue to reflect a significant oversupply, a situation that market commentators believe may take six or seven years to unwind. As a result, the Spanish market appears poised for an extended period of adjustment, with prices declining until 2012, according to Standard & Poors.

Ireland's property market also remains depressed.

Between February 2007, when the market peaked, and July 2009, prices have fallen by 24%. Oversupply is proportionally less dramatic in Ireland than in Spain, but it is nevertheless a significant factor bearing on market prices. Here, market estimates indicate that the excess supply should start to gradually reduce from the end of this year. For now, Standard & Poor’s continue to anticipate an overall house price decline in Ireland of 13% in 2009 and a further dip in 2010.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Between February 2007, when the market peaked, and July 2009, prices have fallen by 24%. Oversupply is proportionally less dramatic in Ireland than in Spain, but it is nevertheless a significant factor bearing on market prices. Here, market estimates indicate that the excess supply should start to gradually reduce from the end of this year. For now, Standard & Poor’s continue to anticipate an overall house price decline in Ireland of 13% in 2009 and a further dip in 2010.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

"The upward momentum in U.K. house prices recorded since April 2009 suggests that the slump that began in August 2007 might have reached an end. In other words, the market found a bottom in the second quarter and is now on the way to recovery.”

Six noted however, the current upturn is unlikely to morph into a full-fledged upward cycle any time soon.

Standard & Poor’s believes very contradictory sets of factors will continue to influence the U.K. housing market: A supply shortage that's only going to get worse in the next couple of years; and high unemployment, highly leveraged households, and credit rationing that will make any upswing in prices difficult to sustain.

“In our opinion, the outcome will be essentially flat prices on a 12-month basis by the end of this year, with about a 3%-4% rise next year."

Downside risk, however, is significant.

The market remains expensive, so first-time buyers, who typically fuel long-term growth, may have to stay on the sidelines for another year. In that case, U.K. house prices could resume their descent at the end of this year, to hit a trough by the third quarter of next year. By then, they could be down 30% from their August 2007 peak.

In European housing markets, signs of bottoming out similar to that of the U.K. remain difficult to find.

With rising unemployment and low wage growth trimming back earnings growth in Spain, for example, market fundamentals are little improved over the past 12 months.

Furthermore, conditions in the Spanish housing market continue to reflect a significant oversupply, a situation that market commentators believe may take six or seven years to unwind. As a result, the Spanish market appears poised for an extended period of adjustment, with prices declining until 2012, according to Standard & Poors.

Ireland's property market also remains depressed.

Between February 2007, when the market peaked, and July 2009, prices have fallen by 24%. Oversupply is proportionally less dramatic in Ireland than in Spain, but it is nevertheless a significant factor bearing on market prices. Here, market estimates indicate that the excess supply should start to gradually reduce from the end of this year. For now, Standard & Poor’s continue to anticipate an overall house price decline in Ireland of 13% in 2009 and a further dip in 2010.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Between February 2007, when the market peaked, and July 2009, prices have fallen by 24%. Oversupply is proportionally less dramatic in Ireland than in Spain, but it is nevertheless a significant factor bearing on market prices. Here, market estimates indicate that the excess supply should start to gradually reduce from the end of this year. For now, Standard & Poor’s continue to anticipate an overall house price decline in Ireland of 13% in 2009 and a further dip in 2010.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Furthermore, conditions in the Spanish housing market continue to reflect a significant oversupply, a situation that market commentators believe may take six or seven years to unwind. As a result, the Spanish market appears poised for an extended period of adjustment, with prices declining until 2012, according to Standard & Poors.

Ireland's property market also remains depressed.

Between February 2007, when the market peaked, and July 2009, prices have fallen by 24%. Oversupply is proportionally less dramatic in Ireland than in Spain, but it is nevertheless a significant factor bearing on market prices. Here, market estimates indicate that the excess supply should start to gradually reduce from the end of this year. For now, Standard & Poor’s continue to anticipate an overall house price decline in Ireland of 13% in 2009 and a further dip in 2010.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Between February 2007, when the market peaked, and July 2009, prices have fallen by 24%. Oversupply is proportionally less dramatic in Ireland than in Spain, but it is nevertheless a significant factor bearing on market prices. Here, market estimates indicate that the excess supply should start to gradually reduce from the end of this year. For now, Standard & Poor’s continue to anticipate an overall house price decline in Ireland of 13% in 2009 and a further dip in 2010.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

With rising unemployment and low wage growth trimming back earnings growth in Spain, for example, market fundamentals are little improved over the past 12 months.

Furthermore, conditions in the Spanish housing market continue to reflect a significant oversupply, a situation that market commentators believe may take six or seven years to unwind. As a result, the Spanish market appears poised for an extended period of adjustment, with prices declining until 2012, according to Standard & Poors.

Ireland's property market also remains depressed.

Between February 2007, when the market peaked, and July 2009, prices have fallen by 24%. Oversupply is proportionally less dramatic in Ireland than in Spain, but it is nevertheless a significant factor bearing on market prices. Here, market estimates indicate that the excess supply should start to gradually reduce from the end of this year. For now, Standard & Poor’s continue to anticipate an overall house price decline in Ireland of 13% in 2009 and a further dip in 2010.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Between February 2007, when the market peaked, and July 2009, prices have fallen by 24%. Oversupply is proportionally less dramatic in Ireland than in Spain, but it is nevertheless a significant factor bearing on market prices. Here, market estimates indicate that the excess supply should start to gradually reduce from the end of this year. For now, Standard & Poor’s continue to anticipate an overall house price decline in Ireland of 13% in 2009 and a further dip in 2010.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Furthermore, conditions in the Spanish housing market continue to reflect a significant oversupply, a situation that market commentators believe may take six or seven years to unwind. As a result, the Spanish market appears poised for an extended period of adjustment, with prices declining until 2012, according to Standard & Poors.

Ireland's property market also remains depressed.

Between February 2007, when the market peaked, and July 2009, prices have fallen by 24%. Oversupply is proportionally less dramatic in Ireland than in Spain, but it is nevertheless a significant factor bearing on market prices. Here, market estimates indicate that the excess supply should start to gradually reduce from the end of this year. For now, Standard & Poor’s continue to anticipate an overall house price decline in Ireland of 13% in 2009 and a further dip in 2010.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Between February 2007, when the market peaked, and July 2009, prices have fallen by 24%. Oversupply is proportionally less dramatic in Ireland than in Spain, but it is nevertheless a significant factor bearing on market prices. Here, market estimates indicate that the excess supply should start to gradually reduce from the end of this year. For now, Standard & Poor’s continue to anticipate an overall house price decline in Ireland of 13% in 2009 and a further dip in 2010.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

In European housing markets, signs of bottoming out similar to that of the U.K. remain difficult to find.

With rising unemployment and low wage growth trimming back earnings growth in Spain, for example, market fundamentals are little improved over the past 12 months.

Furthermore, conditions in the Spanish housing market continue to reflect a significant oversupply, a situation that market commentators believe may take six or seven years to unwind. As a result, the Spanish market appears poised for an extended period of adjustment, with prices declining until 2012, according to Standard & Poors.

Ireland's property market also remains depressed.

Between February 2007, when the market peaked, and July 2009, prices have fallen by 24%. Oversupply is proportionally less dramatic in Ireland than in Spain, but it is nevertheless a significant factor bearing on market prices. Here, market estimates indicate that the excess supply should start to gradually reduce from the end of this year. For now, Standard & Poor’s continue to anticipate an overall house price decline in Ireland of 13% in 2009 and a further dip in 2010.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Between February 2007, when the market peaked, and July 2009, prices have fallen by 24%. Oversupply is proportionally less dramatic in Ireland than in Spain, but it is nevertheless a significant factor bearing on market prices. Here, market estimates indicate that the excess supply should start to gradually reduce from the end of this year. For now, Standard & Poor’s continue to anticipate an overall house price decline in Ireland of 13% in 2009 and a further dip in 2010.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Furthermore, conditions in the Spanish housing market continue to reflect a significant oversupply, a situation that market commentators believe may take six or seven years to unwind. As a result, the Spanish market appears poised for an extended period of adjustment, with prices declining until 2012, according to Standard & Poors.

Ireland's property market also remains depressed.

Between February 2007, when the market peaked, and July 2009, prices have fallen by 24%. Oversupply is proportionally less dramatic in Ireland than in Spain, but it is nevertheless a significant factor bearing on market prices. Here, market estimates indicate that the excess supply should start to gradually reduce from the end of this year. For now, Standard & Poor’s continue to anticipate an overall house price decline in Ireland of 13% in 2009 and a further dip in 2010.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Between February 2007, when the market peaked, and July 2009, prices have fallen by 24%. Oversupply is proportionally less dramatic in Ireland than in Spain, but it is nevertheless a significant factor bearing on market prices. Here, market estimates indicate that the excess supply should start to gradually reduce from the end of this year. For now, Standard & Poor’s continue to anticipate an overall house price decline in Ireland of 13% in 2009 and a further dip in 2010.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

With rising unemployment and low wage growth trimming back earnings growth in Spain, for example, market fundamentals are little improved over the past 12 months.

Furthermore, conditions in the Spanish housing market continue to reflect a significant oversupply, a situation that market commentators believe may take six or seven years to unwind. As a result, the Spanish market appears poised for an extended period of adjustment, with prices declining until 2012, according to Standard & Poors.

Ireland's property market also remains depressed.

Between February 2007, when the market peaked, and July 2009, prices have fallen by 24%. Oversupply is proportionally less dramatic in Ireland than in Spain, but it is nevertheless a significant factor bearing on market prices. Here, market estimates indicate that the excess supply should start to gradually reduce from the end of this year. For now, Standard & Poor’s continue to anticipate an overall house price decline in Ireland of 13% in 2009 and a further dip in 2010.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Between February 2007, when the market peaked, and July 2009, prices have fallen by 24%. Oversupply is proportionally less dramatic in Ireland than in Spain, but it is nevertheless a significant factor bearing on market prices. Here, market estimates indicate that the excess supply should start to gradually reduce from the end of this year. For now, Standard & Poor’s continue to anticipate an overall house price decline in Ireland of 13% in 2009 and a further dip in 2010.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Furthermore, conditions in the Spanish housing market continue to reflect a significant oversupply, a situation that market commentators believe may take six or seven years to unwind. As a result, the Spanish market appears poised for an extended period of adjustment, with prices declining until 2012, according to Standard & Poors.

Ireland's property market also remains depressed.

Between February 2007, when the market peaked, and July 2009, prices have fallen by 24%. Oversupply is proportionally less dramatic in Ireland than in Spain, but it is nevertheless a significant factor bearing on market prices. Here, market estimates indicate that the excess supply should start to gradually reduce from the end of this year. For now, Standard & Poor’s continue to anticipate an overall house price decline in Ireland of 13% in 2009 and a further dip in 2010.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Between February 2007, when the market peaked, and July 2009, prices have fallen by 24%. Oversupply is proportionally less dramatic in Ireland than in Spain, but it is nevertheless a significant factor bearing on market prices. Here, market estimates indicate that the excess supply should start to gradually reduce from the end of this year. For now, Standard & Poor’s continue to anticipate an overall house price decline in Ireland of 13% in 2009 and a further dip in 2010.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Six noted however, the current upturn is unlikely to morph into a full-fledged upward cycle any time soon.

Standard & Poor’s believes very contradictory sets of factors will continue to influence the U.K. housing market: A supply shortage that's only going to get worse in the next couple of years; and high unemployment, highly leveraged households, and credit rationing that will make any upswing in prices difficult to sustain.

“In our opinion, the outcome will be essentially flat prices on a 12-month basis by the end of this year, with about a 3%-4% rise next year."

Downside risk, however, is significant.

The market remains expensive, so first-time buyers, who typically fuel long-term growth, may have to stay on the sidelines for another year. In that case, U.K. house prices could resume their descent at the end of this year, to hit a trough by the third quarter of next year. By then, they could be down 30% from their August 2007 peak.

In European housing markets, signs of bottoming out similar to that of the U.K. remain difficult to find.

With rising unemployment and low wage growth trimming back earnings growth in Spain, for example, market fundamentals are little improved over the past 12 months.

Furthermore, conditions in the Spanish housing market continue to reflect a significant oversupply, a situation that market commentators believe may take six or seven years to unwind. As a result, the Spanish market appears poised for an extended period of adjustment, with prices declining until 2012, according to Standard & Poors.

Ireland's property market also remains depressed.

Between February 2007, when the market peaked, and July 2009, prices have fallen by 24%. Oversupply is proportionally less dramatic in Ireland than in Spain, but it is nevertheless a significant factor bearing on market prices. Here, market estimates indicate that the excess supply should start to gradually reduce from the end of this year. For now, Standard & Poor’s continue to anticipate an overall house price decline in Ireland of 13% in 2009 and a further dip in 2010.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Between February 2007, when the market peaked, and July 2009, prices have fallen by 24%. Oversupply is proportionally less dramatic in Ireland than in Spain, but it is nevertheless a significant factor bearing on market prices. Here, market estimates indicate that the excess supply should start to gradually reduce from the end of this year. For now, Standard & Poor’s continue to anticipate an overall house price decline in Ireland of 13% in 2009 and a further dip in 2010.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Furthermore, conditions in the Spanish housing market continue to reflect a significant oversupply, a situation that market commentators believe may take six or seven years to unwind. As a result, the Spanish market appears poised for an extended period of adjustment, with prices declining until 2012, according to Standard & Poors.

Ireland's property market also remains depressed.

Between February 2007, when the market peaked, and July 2009, prices have fallen by 24%. Oversupply is proportionally less dramatic in Ireland than in Spain, but it is nevertheless a significant factor bearing on market prices. Here, market estimates indicate that the excess supply should start to gradually reduce from the end of this year. For now, Standard & Poor’s continue to anticipate an overall house price decline in Ireland of 13% in 2009 and a further dip in 2010.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Between February 2007, when the market peaked, and July 2009, prices have fallen by 24%. Oversupply is proportionally less dramatic in Ireland than in Spain, but it is nevertheless a significant factor bearing on market prices. Here, market estimates indicate that the excess supply should start to gradually reduce from the end of this year. For now, Standard & Poor’s continue to anticipate an overall house price decline in Ireland of 13% in 2009 and a further dip in 2010.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

With rising unemployment and low wage growth trimming back earnings growth in Spain, for example, market fundamentals are little improved over the past 12 months.

Furthermore, conditions in the Spanish housing market continue to reflect a significant oversupply, a situation that market commentators believe may take six or seven years to unwind. As a result, the Spanish market appears poised for an extended period of adjustment, with prices declining until 2012, according to Standard & Poors.

Ireland's property market also remains depressed.

Between February 2007, when the market peaked, and July 2009, prices have fallen by 24%. Oversupply is proportionally less dramatic in Ireland than in Spain, but it is nevertheless a significant factor bearing on market prices. Here, market estimates indicate that the excess supply should start to gradually reduce from the end of this year. For now, Standard & Poor’s continue to anticipate an overall house price decline in Ireland of 13% in 2009 and a further dip in 2010.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Between February 2007, when the market peaked, and July 2009, prices have fallen by 24%. Oversupply is proportionally less dramatic in Ireland than in Spain, but it is nevertheless a significant factor bearing on market prices. Here, market estimates indicate that the excess supply should start to gradually reduce from the end of this year. For now, Standard & Poor’s continue to anticipate an overall house price decline in Ireland of 13% in 2009 and a further dip in 2010.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Furthermore, conditions in the Spanish housing market continue to reflect a significant oversupply, a situation that market commentators believe may take six or seven years to unwind. As a result, the Spanish market appears poised for an extended period of adjustment, with prices declining until 2012, according to Standard & Poors.

Ireland's property market also remains depressed.

Between February 2007, when the market peaked, and July 2009, prices have fallen by 24%. Oversupply is proportionally less dramatic in Ireland than in Spain, but it is nevertheless a significant factor bearing on market prices. Here, market estimates indicate that the excess supply should start to gradually reduce from the end of this year. For now, Standard & Poor’s continue to anticipate an overall house price decline in Ireland of 13% in 2009 and a further dip in 2010.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Between February 2007, when the market peaked, and July 2009, prices have fallen by 24%. Oversupply is proportionally less dramatic in Ireland than in Spain, but it is nevertheless a significant factor bearing on market prices. Here, market estimates indicate that the excess supply should start to gradually reduce from the end of this year. For now, Standard & Poor’s continue to anticipate an overall house price decline in Ireland of 13% in 2009 and a further dip in 2010.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

In European housing markets, signs of bottoming out similar to that of the U.K. remain difficult to find.

With rising unemployment and low wage growth trimming back earnings growth in Spain, for example, market fundamentals are little improved over the past 12 months.

Furthermore, conditions in the Spanish housing market continue to reflect a significant oversupply, a situation that market commentators believe may take six or seven years to unwind. As a result, the Spanish market appears poised for an extended period of adjustment, with prices declining until 2012, according to Standard & Poors.

Ireland's property market also remains depressed.

Between February 2007, when the market peaked, and July 2009, prices have fallen by 24%. Oversupply is proportionally less dramatic in Ireland than in Spain, but it is nevertheless a significant factor bearing on market prices. Here, market estimates indicate that the excess supply should start to gradually reduce from the end of this year. For now, Standard & Poor’s continue to anticipate an overall house price decline in Ireland of 13% in 2009 and a further dip in 2010.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Between February 2007, when the market peaked, and July 2009, prices have fallen by 24%. Oversupply is proportionally less dramatic in Ireland than in Spain, but it is nevertheless a significant factor bearing on market prices. Here, market estimates indicate that the excess supply should start to gradually reduce from the end of this year. For now, Standard & Poor’s continue to anticipate an overall house price decline in Ireland of 13% in 2009 and a further dip in 2010.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Furthermore, conditions in the Spanish housing market continue to reflect a significant oversupply, a situation that market commentators believe may take six or seven years to unwind. As a result, the Spanish market appears poised for an extended period of adjustment, with prices declining until 2012, according to Standard & Poors.

Ireland's property market also remains depressed.

Between February 2007, when the market peaked, and July 2009, prices have fallen by 24%. Oversupply is proportionally less dramatic in Ireland than in Spain, but it is nevertheless a significant factor bearing on market prices. Here, market estimates indicate that the excess supply should start to gradually reduce from the end of this year. For now, Standard & Poor’s continue to anticipate an overall house price decline in Ireland of 13% in 2009 and a further dip in 2010.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Between February 2007, when the market peaked, and July 2009, prices have fallen by 24%. Oversupply is proportionally less dramatic in Ireland than in Spain, but it is nevertheless a significant factor bearing on market prices. Here, market estimates indicate that the excess supply should start to gradually reduce from the end of this year. For now, Standard & Poor’s continue to anticipate an overall house price decline in Ireland of 13% in 2009 and a further dip in 2010.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

With rising unemployment and low wage growth trimming back earnings growth in Spain, for example, market fundamentals are little improved over the past 12 months.

Furthermore, conditions in the Spanish housing market continue to reflect a significant oversupply, a situation that market commentators believe may take six or seven years to unwind. As a result, the Spanish market appears poised for an extended period of adjustment, with prices declining until 2012, according to Standard & Poors.

Ireland's property market also remains depressed.

Between February 2007, when the market peaked, and July 2009, prices have fallen by 24%. Oversupply is proportionally less dramatic in Ireland than in Spain, but it is nevertheless a significant factor bearing on market prices. Here, market estimates indicate that the excess supply should start to gradually reduce from the end of this year. For now, Standard & Poor’s continue to anticipate an overall house price decline in Ireland of 13% in 2009 and a further dip in 2010.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Between February 2007, when the market peaked, and July 2009, prices have fallen by 24%. Oversupply is proportionally less dramatic in Ireland than in Spain, but it is nevertheless a significant factor bearing on market prices. Here, market estimates indicate that the excess supply should start to gradually reduce from the end of this year. For now, Standard & Poor’s continue to anticipate an overall house price decline in Ireland of 13% in 2009 and a further dip in 2010.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Furthermore, conditions in the Spanish housing market continue to reflect a significant oversupply, a situation that market commentators believe may take six or seven years to unwind. As a result, the Spanish market appears poised for an extended period of adjustment, with prices declining until 2012, according to Standard & Poors.

Ireland's property market also remains depressed.

Between February 2007, when the market peaked, and July 2009, prices have fallen by 24%. Oversupply is proportionally less dramatic in Ireland than in Spain, but it is nevertheless a significant factor bearing on market prices. Here, market estimates indicate that the excess supply should start to gradually reduce from the end of this year. For now, Standard & Poor’s continue to anticipate an overall house price decline in Ireland of 13% in 2009 and a further dip in 2010.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Between February 2007, when the market peaked, and July 2009, prices have fallen by 24%. Oversupply is proportionally less dramatic in Ireland than in Spain, but it is nevertheless a significant factor bearing on market prices. Here, market estimates indicate that the excess supply should start to gradually reduce from the end of this year. For now, Standard & Poor’s continue to anticipate an overall house price decline in Ireland of 13% in 2009 and a further dip in 2010.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

"Of all Europe's housing markets, that in the U.K. appears the most positive, in our view," said Jean-Michel Six, Standard & Poor's chief economist for Europe.

"The upward momentum in U.K. house prices recorded since April 2009 suggests that the slump that began in August 2007 might have reached an end. In other words, the market found a bottom in the second quarter and is now on the way to recovery.”

Six noted however, the current upturn is unlikely to morph into a full-fledged upward cycle any time soon.

Standard & Poor’s believes very contradictory sets of factors will continue to influence the U.K. housing market: A supply shortage that's only going to get worse in the next couple of years; and high unemployment, highly leveraged households, and credit rationing that will make any upswing in prices difficult to sustain.

“In our opinion, the outcome will be essentially flat prices on a 12-month basis by the end of this year, with about a 3%-4% rise next year."

Downside risk, however, is significant.

The market remains expensive, so first-time buyers, who typically fuel long-term growth, may have to stay on the sidelines for another year. In that case, U.K. house prices could resume their descent at the end of this year, to hit a trough by the third quarter of next year. By then, they could be down 30% from their August 2007 peak.

In European housing markets, signs of bottoming out similar to that of the U.K. remain difficult to find.

With rising unemployment and low wage growth trimming back earnings growth in Spain, for example, market fundamentals are little improved over the past 12 months.

Furthermore, conditions in the Spanish housing market continue to reflect a significant oversupply, a situation that market commentators believe may take six or seven years to unwind. As a result, the Spanish market appears poised for an extended period of adjustment, with prices declining until 2012, according to Standard & Poors.

Ireland's property market also remains depressed.

Between February 2007, when the market peaked, and July 2009, prices have fallen by 24%. Oversupply is proportionally less dramatic in Ireland than in Spain, but it is nevertheless a significant factor bearing on market prices. Here, market estimates indicate that the excess supply should start to gradually reduce from the end of this year. For now, Standard & Poor’s continue to anticipate an overall house price decline in Ireland of 13% in 2009 and a further dip in 2010.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Between February 2007, when the market peaked, and July 2009, prices have fallen by 24%. Oversupply is proportionally less dramatic in Ireland than in Spain, but it is nevertheless a significant factor bearing on market prices. Here, market estimates indicate that the excess supply should start to gradually reduce from the end of this year. For now, Standard & Poor’s continue to anticipate an overall house price decline in Ireland of 13% in 2009 and a further dip in 2010.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Furthermore, conditions in the Spanish housing market continue to reflect a significant oversupply, a situation that market commentators believe may take six or seven years to unwind. As a result, the Spanish market appears poised for an extended period of adjustment, with prices declining until 2012, according to Standard & Poors.

Ireland's property market also remains depressed.

Between February 2007, when the market peaked, and July 2009, prices have fallen by 24%. Oversupply is proportionally less dramatic in Ireland than in Spain, but it is nevertheless a significant factor bearing on market prices. Here, market estimates indicate that the excess supply should start to gradually reduce from the end of this year. For now, Standard & Poor’s continue to anticipate an overall house price decline in Ireland of 13% in 2009 and a further dip in 2010.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Between February 2007, when the market peaked, and July 2009, prices have fallen by 24%. Oversupply is proportionally less dramatic in Ireland than in Spain, but it is nevertheless a significant factor bearing on market prices. Here, market estimates indicate that the excess supply should start to gradually reduce from the end of this year. For now, Standard & Poor’s continue to anticipate an overall house price decline in Ireland of 13% in 2009 and a further dip in 2010.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

With rising unemployment and low wage growth trimming back earnings growth in Spain, for example, market fundamentals are little improved over the past 12 months.

Furthermore, conditions in the Spanish housing market continue to reflect a significant oversupply, a situation that market commentators believe may take six or seven years to unwind. As a result, the Spanish market appears poised for an extended period of adjustment, with prices declining until 2012, according to Standard & Poors.

Ireland's property market also remains depressed.

Between February 2007, when the market peaked, and July 2009, prices have fallen by 24%. Oversupply is proportionally less dramatic in Ireland than in Spain, but it is nevertheless a significant factor bearing on market prices. Here, market estimates indicate that the excess supply should start to gradually reduce from the end of this year. For now, Standard & Poor’s continue to anticipate an overall house price decline in Ireland of 13% in 2009 and a further dip in 2010.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Between February 2007, when the market peaked, and July 2009, prices have fallen by 24%. Oversupply is proportionally less dramatic in Ireland than in Spain, but it is nevertheless a significant factor bearing on market prices. Here, market estimates indicate that the excess supply should start to gradually reduce from the end of this year. For now, Standard & Poor’s continue to anticipate an overall house price decline in Ireland of 13% in 2009 and a further dip in 2010.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Furthermore, conditions in the Spanish housing market continue to reflect a significant oversupply, a situation that market commentators believe may take six or seven years to unwind. As a result, the Spanish market appears poised for an extended period of adjustment, with prices declining until 2012, according to Standard & Poors.

Ireland's property market also remains depressed.

Between February 2007, when the market peaked, and July 2009, prices have fallen by 24%. Oversupply is proportionally less dramatic in Ireland than in Spain, but it is nevertheless a significant factor bearing on market prices. Here, market estimates indicate that the excess supply should start to gradually reduce from the end of this year. For now, Standard & Poor’s continue to anticipate an overall house price decline in Ireland of 13% in 2009 and a further dip in 2010.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Between February 2007, when the market peaked, and July 2009, prices have fallen by 24%. Oversupply is proportionally less dramatic in Ireland than in Spain, but it is nevertheless a significant factor bearing on market prices. Here, market estimates indicate that the excess supply should start to gradually reduce from the end of this year. For now, Standard & Poor’s continue to anticipate an overall house price decline in Ireland of 13% in 2009 and a further dip in 2010.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

In European housing markets, signs of bottoming out similar to that of the U.K. remain difficult to find.

With rising unemployment and low wage growth trimming back earnings growth in Spain, for example, market fundamentals are little improved over the past 12 months.

Furthermore, conditions in the Spanish housing market continue to reflect a significant oversupply, a situation that market commentators believe may take six or seven years to unwind. As a result, the Spanish market appears poised for an extended period of adjustment, with prices declining until 2012, according to Standard & Poors.

Ireland's property market also remains depressed.

Between February 2007, when the market peaked, and July 2009, prices have fallen by 24%. Oversupply is proportionally less dramatic in Ireland than in Spain, but it is nevertheless a significant factor bearing on market prices. Here, market estimates indicate that the excess supply should start to gradually reduce from the end of this year. For now, Standard & Poor’s continue to anticipate an overall house price decline in Ireland of 13% in 2009 and a further dip in 2010.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Between February 2007, when the market peaked, and July 2009, prices have fallen by 24%. Oversupply is proportionally less dramatic in Ireland than in Spain, but it is nevertheless a significant factor bearing on market prices. Here, market estimates indicate that the excess supply should start to gradually reduce from the end of this year. For now, Standard & Poor’s continue to anticipate an overall house price decline in Ireland of 13% in 2009 and a further dip in 2010.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Furthermore, conditions in the Spanish housing market continue to reflect a significant oversupply, a situation that market commentators believe may take six or seven years to unwind. As a result, the Spanish market appears poised for an extended period of adjustment, with prices declining until 2012, according to Standard & Poors.

Ireland's property market also remains depressed.

Between February 2007, when the market peaked, and July 2009, prices have fallen by 24%. Oversupply is proportionally less dramatic in Ireland than in Spain, but it is nevertheless a significant factor bearing on market prices. Here, market estimates indicate that the excess supply should start to gradually reduce from the end of this year. For now, Standard & Poor’s continue to anticipate an overall house price decline in Ireland of 13% in 2009 and a further dip in 2010.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Between February 2007, when the market peaked, and July 2009, prices have fallen by 24%. Oversupply is proportionally less dramatic in Ireland than in Spain, but it is nevertheless a significant factor bearing on market prices. Here, market estimates indicate that the excess supply should start to gradually reduce from the end of this year. For now, Standard & Poor’s continue to anticipate an overall house price decline in Ireland of 13% in 2009 and a further dip in 2010.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

With rising unemployment and low wage growth trimming back earnings growth in Spain, for example, market fundamentals are little improved over the past 12 months.

Furthermore, conditions in the Spanish housing market continue to reflect a significant oversupply, a situation that market commentators believe may take six or seven years to unwind. As a result, the Spanish market appears poised for an extended period of adjustment, with prices declining until 2012, according to Standard & Poors.

Ireland's property market also remains depressed.

Between February 2007, when the market peaked, and July 2009, prices have fallen by 24%. Oversupply is proportionally less dramatic in Ireland than in Spain, but it is nevertheless a significant factor bearing on market prices. Here, market estimates indicate that the excess supply should start to gradually reduce from the end of this year. For now, Standard & Poor’s continue to anticipate an overall house price decline in Ireland of 13% in 2009 and a further dip in 2010.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Between February 2007, when the market peaked, and July 2009, prices have fallen by 24%. Oversupply is proportionally less dramatic in Ireland than in Spain, but it is nevertheless a significant factor bearing on market prices. Here, market estimates indicate that the excess supply should start to gradually reduce from the end of this year. For now, Standard & Poor’s continue to anticipate an overall house price decline in Ireland of 13% in 2009 and a further dip in 2010.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Furthermore, conditions in the Spanish housing market continue to reflect a significant oversupply, a situation that market commentators believe may take six or seven years to unwind. As a result, the Spanish market appears poised for an extended period of adjustment, with prices declining until 2012, according to Standard & Poors.

Ireland's property market also remains depressed.

Between February 2007, when the market peaked, and July 2009, prices have fallen by 24%. Oversupply is proportionally less dramatic in Ireland than in Spain, but it is nevertheless a significant factor bearing on market prices. Here, market estimates indicate that the excess supply should start to gradually reduce from the end of this year. For now, Standard & Poor’s continue to anticipate an overall house price decline in Ireland of 13% in 2009 and a further dip in 2010.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Between February 2007, when the market peaked, and July 2009, prices have fallen by 24%. Oversupply is proportionally less dramatic in Ireland than in Spain, but it is nevertheless a significant factor bearing on market prices. Here, market estimates indicate that the excess supply should start to gradually reduce from the end of this year. For now, Standard & Poor’s continue to anticipate an overall house price decline in Ireland of 13% in 2009 and a further dip in 2010.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Six noted however, the current upturn is unlikely to morph into a full-fledged upward cycle any time soon.

Standard & Poor’s believes very contradictory sets of factors will continue to influence the U.K. housing market: A supply shortage that's only going to get worse in the next couple of years; and high unemployment, highly leveraged households, and credit rationing that will make any upswing in prices difficult to sustain.

“In our opinion, the outcome will be essentially flat prices on a 12-month basis by the end of this year, with about a 3%-4% rise next year."

Downside risk, however, is significant.

The market remains expensive, so first-time buyers, who typically fuel long-term growth, may have to stay on the sidelines for another year. In that case, U.K. house prices could resume their descent at the end of this year, to hit a trough by the third quarter of next year. By then, they could be down 30% from their August 2007 peak.

In European housing markets, signs of bottoming out similar to that of the U.K. remain difficult to find.

With rising unemployment and low wage growth trimming back earnings growth in Spain, for example, market fundamentals are little improved over the past 12 months.

Furthermore, conditions in the Spanish housing market continue to reflect a significant oversupply, a situation that market commentators believe may take six or seven years to unwind. As a result, the Spanish market appears poised for an extended period of adjustment, with prices declining until 2012, according to Standard & Poors.

Ireland's property market also remains depressed.

Between February 2007, when the market peaked, and July 2009, prices have fallen by 24%. Oversupply is proportionally less dramatic in Ireland than in Spain, but it is nevertheless a significant factor bearing on market prices. Here, market estimates indicate that the excess supply should start to gradually reduce from the end of this year. For now, Standard & Poor’s continue to anticipate an overall house price decline in Ireland of 13% in 2009 and a further dip in 2010.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Between February 2007, when the market peaked, and July 2009, prices have fallen by 24%. Oversupply is proportionally less dramatic in Ireland than in Spain, but it is nevertheless a significant factor bearing on market prices. Here, market estimates indicate that the excess supply should start to gradually reduce from the end of this year. For now, Standard & Poor’s continue to anticipate an overall house price decline in Ireland of 13% in 2009 and a further dip in 2010.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Furthermore, conditions in the Spanish housing market continue to reflect a significant oversupply, a situation that market commentators believe may take six or seven years to unwind. As a result, the Spanish market appears poised for an extended period of adjustment, with prices declining until 2012, according to Standard & Poors.

Ireland's property market also remains depressed.

Between February 2007, when the market peaked, and July 2009, prices have fallen by 24%. Oversupply is proportionally less dramatic in Ireland than in Spain, but it is nevertheless a significant factor bearing on market prices. Here, market estimates indicate that the excess supply should start to gradually reduce from the end of this year. For now, Standard & Poor’s continue to anticipate an overall house price decline in Ireland of 13% in 2009 and a further dip in 2010.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Between February 2007, when the market peaked, and July 2009, prices have fallen by 24%. Oversupply is proportionally less dramatic in Ireland than in Spain, but it is nevertheless a significant factor bearing on market prices. Here, market estimates indicate that the excess supply should start to gradually reduce from the end of this year. For now, Standard & Poor’s continue to anticipate an overall house price decline in Ireland of 13% in 2009 and a further dip in 2010.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

With rising unemployment and low wage growth trimming back earnings growth in Spain, for example, market fundamentals are little improved over the past 12 months.

Furthermore, conditions in the Spanish housing market continue to reflect a significant oversupply, a situation that market commentators believe may take six or seven years to unwind. As a result, the Spanish market appears poised for an extended period of adjustment, with prices declining until 2012, according to Standard & Poors.

Ireland's property market also remains depressed.

Between February 2007, when the market peaked, and July 2009, prices have fallen by 24%. Oversupply is proportionally less dramatic in Ireland than in Spain, but it is nevertheless a significant factor bearing on market prices. Here, market estimates indicate that the excess supply should start to gradually reduce from the end of this year. For now, Standard & Poor’s continue to anticipate an overall house price decline in Ireland of 13% in 2009 and a further dip in 2010.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Between February 2007, when the market peaked, and July 2009, prices have fallen by 24%. Oversupply is proportionally less dramatic in Ireland than in Spain, but it is nevertheless a significant factor bearing on market prices. Here, market estimates indicate that the excess supply should start to gradually reduce from the end of this year. For now, Standard & Poor’s continue to anticipate an overall house price decline in Ireland of 13% in 2009 and a further dip in 2010.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Furthermore, conditions in the Spanish housing market continue to reflect a significant oversupply, a situation that market commentators believe may take six or seven years to unwind. As a result, the Spanish market appears poised for an extended period of adjustment, with prices declining until 2012, according to Standard & Poors.

Ireland's property market also remains depressed.

Between February 2007, when the market peaked, and July 2009, prices have fallen by 24%. Oversupply is proportionally less dramatic in Ireland than in Spain, but it is nevertheless a significant factor bearing on market prices. Here, market estimates indicate that the excess supply should start to gradually reduce from the end of this year. For now, Standard & Poor’s continue to anticipate an overall house price decline in Ireland of 13% in 2009 and a further dip in 2010.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Between February 2007, when the market peaked, and July 2009, prices have fallen by 24%. Oversupply is proportionally less dramatic in Ireland than in Spain, but it is nevertheless a significant factor bearing on market prices. Here, market estimates indicate that the excess supply should start to gradually reduce from the end of this year. For now, Standard & Poor’s continue to anticipate an overall house price decline in Ireland of 13% in 2009 and a further dip in 2010.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

In European housing markets, signs of bottoming out similar to that of the U.K. remain difficult to find.

With rising unemployment and low wage growth trimming back earnings growth in Spain, for example, market fundamentals are little improved over the past 12 months.

Furthermore, conditions in the Spanish housing market continue to reflect a significant oversupply, a situation that market commentators believe may take six or seven years to unwind. As a result, the Spanish market appears poised for an extended period of adjustment, with prices declining until 2012, according to Standard & Poors.

Ireland's property market also remains depressed.

Between February 2007, when the market peaked, and July 2009, prices have fallen by 24%. Oversupply is proportionally less dramatic in Ireland than in Spain, but it is nevertheless a significant factor bearing on market prices. Here, market estimates indicate that the excess supply should start to gradually reduce from the end of this year. For now, Standard & Poor’s continue to anticipate an overall house price decline in Ireland of 13% in 2009 and a further dip in 2010.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Between February 2007, when the market peaked, and July 2009, prices have fallen by 24%. Oversupply is proportionally less dramatic in Ireland than in Spain, but it is nevertheless a significant factor bearing on market prices. Here, market estimates indicate that the excess supply should start to gradually reduce from the end of this year. For now, Standard & Poor’s continue to anticipate an overall house price decline in Ireland of 13% in 2009 and a further dip in 2010.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Furthermore, conditions in the Spanish housing market continue to reflect a significant oversupply, a situation that market commentators believe may take six or seven years to unwind. As a result, the Spanish market appears poised for an extended period of adjustment, with prices declining until 2012, according to Standard & Poors.

Ireland's property market also remains depressed.

Between February 2007, when the market peaked, and July 2009, prices have fallen by 24%. Oversupply is proportionally less dramatic in Ireland than in Spain, but it is nevertheless a significant factor bearing on market prices. Here, market estimates indicate that the excess supply should start to gradually reduce from the end of this year. For now, Standard & Poor’s continue to anticipate an overall house price decline in Ireland of 13% in 2009 and a further dip in 2010.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Between February 2007, when the market peaked, and July 2009, prices have fallen by 24%. Oversupply is proportionally less dramatic in Ireland than in Spain, but it is nevertheless a significant factor bearing on market prices. Here, market estimates indicate that the excess supply should start to gradually reduce from the end of this year. For now, Standard & Poor’s continue to anticipate an overall house price decline in Ireland of 13% in 2009 and a further dip in 2010.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

With rising unemployment and low wage growth trimming back earnings growth in Spain, for example, market fundamentals are little improved over the past 12 months.

Furthermore, conditions in the Spanish housing market continue to reflect a significant oversupply, a situation that market commentators believe may take six or seven years to unwind. As a result, the Spanish market appears poised for an extended period of adjustment, with prices declining until 2012, according to Standard & Poors.

Ireland's property market also remains depressed.

Between February 2007, when the market peaked, and July 2009, prices have fallen by 24%. Oversupply is proportionally less dramatic in Ireland than in Spain, but it is nevertheless a significant factor bearing on market prices. Here, market estimates indicate that the excess supply should start to gradually reduce from the end of this year. For now, Standard & Poor’s continue to anticipate an overall house price decline in Ireland of 13% in 2009 and a further dip in 2010.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Between February 2007, when the market peaked, and July 2009, prices have fallen by 24%. Oversupply is proportionally less dramatic in Ireland than in Spain, but it is nevertheless a significant factor bearing on market prices. Here, market estimates indicate that the excess supply should start to gradually reduce from the end of this year. For now, Standard & Poor’s continue to anticipate an overall house price decline in Ireland of 13% in 2009 and a further dip in 2010.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Furthermore, conditions in the Spanish housing market continue to reflect a significant oversupply, a situation that market commentators believe may take six or seven years to unwind. As a result, the Spanish market appears poised for an extended period of adjustment, with prices declining until 2012, according to Standard & Poors.

Ireland's property market also remains depressed.

Between February 2007, when the market peaked, and July 2009, prices have fallen by 24%. Oversupply is proportionally less dramatic in Ireland than in Spain, but it is nevertheless a significant factor bearing on market prices. Here, market estimates indicate that the excess supply should start to gradually reduce from the end of this year. For now, Standard & Poor’s continue to anticipate an overall house price decline in Ireland of 13% in 2009 and a further dip in 2010.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Between February 2007, when the market peaked, and July 2009, prices have fallen by 24%. Oversupply is proportionally less dramatic in Ireland than in Spain, but it is nevertheless a significant factor bearing on market prices. Here, market estimates indicate that the excess supply should start to gradually reduce from the end of this year. For now, Standard & Poor’s continue to anticipate an overall house price decline in Ireland of 13% in 2009 and a further dip in 2010.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

"The upward momentum in U.K. house prices recorded since April 2009 suggests that the slump that began in August 2007 might have reached an end. In other words, the market found a bottom in the second quarter and is now on the way to recovery.”

Six noted however, the current upturn is unlikely to morph into a full-fledged upward cycle any time soon.

Standard & Poor’s believes very contradictory sets of factors will continue to influence the U.K. housing market: A supply shortage that's only going to get worse in the next couple of years; and high unemployment, highly leveraged households, and credit rationing that will make any upswing in prices difficult to sustain.

“In our opinion, the outcome will be essentially flat prices on a 12-month basis by the end of this year, with about a 3%-4% rise next year."

Downside risk, however, is significant.

The market remains expensive, so first-time buyers, who typically fuel long-term growth, may have to stay on the sidelines for another year. In that case, U.K. house prices could resume their descent at the end of this year, to hit a trough by the third quarter of next year. By then, they could be down 30% from their August 2007 peak.

In European housing markets, signs of bottoming out similar to that of the U.K. remain difficult to find.

With rising unemployment and low wage growth trimming back earnings growth in Spain, for example, market fundamentals are little improved over the past 12 months.

Furthermore, conditions in the Spanish housing market continue to reflect a significant oversupply, a situation that market commentators believe may take six or seven years to unwind. As a result, the Spanish market appears poised for an extended period of adjustment, with prices declining until 2012, according to Standard & Poors.

Ireland's property market also remains depressed.

Between February 2007, when the market peaked, and July 2009, prices have fallen by 24%. Oversupply is proportionally less dramatic in Ireland than in Spain, but it is nevertheless a significant factor bearing on market prices. Here, market estimates indicate that the excess supply should start to gradually reduce from the end of this year. For now, Standard & Poor’s continue to anticipate an overall house price decline in Ireland of 13% in 2009 and a further dip in 2010.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Between February 2007, when the market peaked, and July 2009, prices have fallen by 24%. Oversupply is proportionally less dramatic in Ireland than in Spain, but it is nevertheless a significant factor bearing on market prices. Here, market estimates indicate that the excess supply should start to gradually reduce from the end of this year. For now, Standard & Poor’s continue to anticipate an overall house price decline in Ireland of 13% in 2009 and a further dip in 2010.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Furthermore, conditions in the Spanish housing market continue to reflect a significant oversupply, a situation that market commentators believe may take six or seven years to unwind. As a result, the Spanish market appears poised for an extended period of adjustment, with prices declining until 2012, according to Standard & Poors.

Ireland's property market also remains depressed.

Between February 2007, when the market peaked, and July 2009, prices have fallen by 24%. Oversupply is proportionally less dramatic in Ireland than in Spain, but it is nevertheless a significant factor bearing on market prices. Here, market estimates indicate that the excess supply should start to gradually reduce from the end of this year. For now, Standard & Poor’s continue to anticipate an overall house price decline in Ireland of 13% in 2009 and a further dip in 2010.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Between February 2007, when the market peaked, and July 2009, prices have fallen by 24%. Oversupply is proportionally less dramatic in Ireland than in Spain, but it is nevertheless a significant factor bearing on market prices. Here, market estimates indicate that the excess supply should start to gradually reduce from the end of this year. For now, Standard & Poor’s continue to anticipate an overall house price decline in Ireland of 13% in 2009 and a further dip in 2010.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

With rising unemployment and low wage growth trimming back earnings growth in Spain, for example, market fundamentals are little improved over the past 12 months.

Furthermore, conditions in the Spanish housing market continue to reflect a significant oversupply, a situation that market commentators believe may take six or seven years to unwind. As a result, the Spanish market appears poised for an extended period of adjustment, with prices declining until 2012, according to Standard & Poors.

Ireland's property market also remains depressed.

Between February 2007, when the market peaked, and July 2009, prices have fallen by 24%. Oversupply is proportionally less dramatic in Ireland than in Spain, but it is nevertheless a significant factor bearing on market prices. Here, market estimates indicate that the excess supply should start to gradually reduce from the end of this year. For now, Standard & Poor’s continue to anticipate an overall house price decline in Ireland of 13% in 2009 and a further dip in 2010.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Between February 2007, when the market peaked, and July 2009, prices have fallen by 24%. Oversupply is proportionally less dramatic in Ireland than in Spain, but it is nevertheless a significant factor bearing on market prices. Here, market estimates indicate that the excess supply should start to gradually reduce from the end of this year. For now, Standard & Poor’s continue to anticipate an overall house price decline in Ireland of 13% in 2009 and a further dip in 2010.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Furthermore, conditions in the Spanish housing market continue to reflect a significant oversupply, a situation that market commentators believe may take six or seven years to unwind. As a result, the Spanish market appears poised for an extended period of adjustment, with prices declining until 2012, according to Standard & Poors.

Ireland's property market also remains depressed.

Between February 2007, when the market peaked, and July 2009, prices have fallen by 24%. Oversupply is proportionally less dramatic in Ireland than in Spain, but it is nevertheless a significant factor bearing on market prices. Here, market estimates indicate that the excess supply should start to gradually reduce from the end of this year. For now, Standard & Poor’s continue to anticipate an overall house price decline in Ireland of 13% in 2009 and a further dip in 2010.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Between February 2007, when the market peaked, and July 2009, prices have fallen by 24%. Oversupply is proportionally less dramatic in Ireland than in Spain, but it is nevertheless a significant factor bearing on market prices. Here, market estimates indicate that the excess supply should start to gradually reduce from the end of this year. For now, Standard & Poor’s continue to anticipate an overall house price decline in Ireland of 13% in 2009 and a further dip in 2010.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

In European housing markets, signs of bottoming out similar to that of the U.K. remain difficult to find.

With rising unemployment and low wage growth trimming back earnings growth in Spain, for example, market fundamentals are little improved over the past 12 months.

Furthermore, conditions in the Spanish housing market continue to reflect a significant oversupply, a situation that market commentators believe may take six or seven years to unwind. As a result, the Spanish market appears poised for an extended period of adjustment, with prices declining until 2012, according to Standard & Poors.

Ireland's property market also remains depressed.

Between February 2007, when the market peaked, and July 2009, prices have fallen by 24%. Oversupply is proportionally less dramatic in Ireland than in Spain, but it is nevertheless a significant factor bearing on market prices. Here, market estimates indicate that the excess supply should start to gradually reduce from the end of this year. For now, Standard & Poor’s continue to anticipate an overall house price decline in Ireland of 13% in 2009 and a further dip in 2010.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Between February 2007, when the market peaked, and July 2009, prices have fallen by 24%. Oversupply is proportionally less dramatic in Ireland than in Spain, but it is nevertheless a significant factor bearing on market prices. Here, market estimates indicate that the excess supply should start to gradually reduce from the end of this year. For now, Standard & Poor’s continue to anticipate an overall house price decline in Ireland of 13% in 2009 and a further dip in 2010.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Furthermore, conditions in the Spanish housing market continue to reflect a significant oversupply, a situation that market commentators believe may take six or seven years to unwind. As a result, the Spanish market appears poised for an extended period of adjustment, with prices declining until 2012, according to Standard & Poors.

Ireland's property market also remains depressed.

Between February 2007, when the market peaked, and July 2009, prices have fallen by 24%. Oversupply is proportionally less dramatic in Ireland than in Spain, but it is nevertheless a significant factor bearing on market prices. Here, market estimates indicate that the excess supply should start to gradually reduce from the end of this year. For now, Standard & Poor’s continue to anticipate an overall house price decline in Ireland of 13% in 2009 and a further dip in 2010.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Between February 2007, when the market peaked, and July 2009, prices have fallen by 24%. Oversupply is proportionally less dramatic in Ireland than in Spain, but it is nevertheless a significant factor bearing on market prices. Here, market estimates indicate that the excess supply should start to gradually reduce from the end of this year. For now, Standard & Poor’s continue to anticipate an overall house price decline in Ireland of 13% in 2009 and a further dip in 2010.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

With rising unemployment and low wage growth trimming back earnings growth in Spain, for example, market fundamentals are little improved over the past 12 months.

Furthermore, conditions in the Spanish housing market continue to reflect a significant oversupply, a situation that market commentators believe may take six or seven years to unwind. As a result, the Spanish market appears poised for an extended period of adjustment, with prices declining until 2012, according to Standard & Poors.

Ireland's property market also remains depressed.

Between February 2007, when the market peaked, and July 2009, prices have fallen by 24%. Oversupply is proportionally less dramatic in Ireland than in Spain, but it is nevertheless a significant factor bearing on market prices. Here, market estimates indicate that the excess supply should start to gradually reduce from the end of this year. For now, Standard & Poor’s continue to anticipate an overall house price decline in Ireland of 13% in 2009 and a further dip in 2010.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Between February 2007, when the market peaked, and July 2009, prices have fallen by 24%. Oversupply is proportionally less dramatic in Ireland than in Spain, but it is nevertheless a significant factor bearing on market prices. Here, market estimates indicate that the excess supply should start to gradually reduce from the end of this year. For now, Standard & Poor’s continue to anticipate an overall house price decline in Ireland of 13% in 2009 and a further dip in 2010.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Furthermore, conditions in the Spanish housing market continue to reflect a significant oversupply, a situation that market commentators believe may take six or seven years to unwind. As a result, the Spanish market appears poised for an extended period of adjustment, with prices declining until 2012, according to Standard & Poors.

Ireland's property market also remains depressed.

Between February 2007, when the market peaked, and July 2009, prices have fallen by 24%. Oversupply is proportionally less dramatic in Ireland than in Spain, but it is nevertheless a significant factor bearing on market prices. Here, market estimates indicate that the excess supply should start to gradually reduce from the end of this year. For now, Standard & Poor’s continue to anticipate an overall house price decline in Ireland of 13% in 2009 and a further dip in 2010.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Between February 2007, when the market peaked, and July 2009, prices have fallen by 24%. Oversupply is proportionally less dramatic in Ireland than in Spain, but it is nevertheless a significant factor bearing on market prices. Here, market estimates indicate that the excess supply should start to gradually reduce from the end of this year. For now, Standard & Poor’s continue to anticipate an overall house price decline in Ireland of 13% in 2009 and a further dip in 2010.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Six noted however, the current upturn is unlikely to morph into a full-fledged upward cycle any time soon.

Standard & Poor’s believes very contradictory sets of factors will continue to influence the U.K. housing market: A supply shortage that's only going to get worse in the next couple of years; and high unemployment, highly leveraged households, and credit rationing that will make any upswing in prices difficult to sustain.

“In our opinion, the outcome will be essentially flat prices on a 12-month basis by the end of this year, with about a 3%-4% rise next year."

Downside risk, however, is significant.

The market remains expensive, so first-time buyers, who typically fuel long-term growth, may have to stay on the sidelines for another year. In that case, U.K. house prices could resume their descent at the end of this year, to hit a trough by the third quarter of next year. By then, they could be down 30% from their August 2007 peak.

In European housing markets, signs of bottoming out similar to that of the U.K. remain difficult to find.

With rising unemployment and low wage growth trimming back earnings growth in Spain, for example, market fundamentals are little improved over the past 12 months.

Furthermore, conditions in the Spanish housing market continue to reflect a significant oversupply, a situation that market commentators believe may take six or seven years to unwind. As a result, the Spanish market appears poised for an extended period of adjustment, with prices declining until 2012, according to Standard & Poors.

Ireland's property market also remains depressed.

Between February 2007, when the market peaked, and July 2009, prices have fallen by 24%. Oversupply is proportionally less dramatic in Ireland than in Spain, but it is nevertheless a significant factor bearing on market prices. Here, market estimates indicate that the excess supply should start to gradually reduce from the end of this year. For now, Standard & Poor’s continue to anticipate an overall house price decline in Ireland of 13% in 2009 and a further dip in 2010.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Between February 2007, when the market peaked, and July 2009, prices have fallen by 24%. Oversupply is proportionally less dramatic in Ireland than in Spain, but it is nevertheless a significant factor bearing on market prices. Here, market estimates indicate that the excess supply should start to gradually reduce from the end of this year. For now, Standard & Poor’s continue to anticipate an overall house price decline in Ireland of 13% in 2009 and a further dip in 2010.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Furthermore, conditions in the Spanish housing market continue to reflect a significant oversupply, a situation that market commentators believe may take six or seven years to unwind. As a result, the Spanish market appears poised for an extended period of adjustment, with prices declining until 2012, according to Standard & Poors.

Ireland's property market also remains depressed.

Between February 2007, when the market peaked, and July 2009, prices have fallen by 24%. Oversupply is proportionally less dramatic in Ireland than in Spain, but it is nevertheless a significant factor bearing on market prices. Here, market estimates indicate that the excess supply should start to gradually reduce from the end of this year. For now, Standard & Poor’s continue to anticipate an overall house price decline in Ireland of 13% in 2009 and a further dip in 2010.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Between February 2007, when the market peaked, and July 2009, prices have fallen by 24%. Oversupply is proportionally less dramatic in Ireland than in Spain, but it is nevertheless a significant factor bearing on market prices. Here, market estimates indicate that the excess supply should start to gradually reduce from the end of this year. For now, Standard & Poor’s continue to anticipate an overall house price decline in Ireland of 13% in 2009 and a further dip in 2010.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

With rising unemployment and low wage growth trimming back earnings growth in Spain, for example, market fundamentals are little improved over the past 12 months.

Furthermore, conditions in the Spanish housing market continue to reflect a significant oversupply, a situation that market commentators believe may take six or seven years to unwind. As a result, the Spanish market appears poised for an extended period of adjustment, with prices declining until 2012, according to Standard & Poors.

Ireland's property market also remains depressed.

Between February 2007, when the market peaked, and July 2009, prices have fallen by 24%. Oversupply is proportionally less dramatic in Ireland than in Spain, but it is nevertheless a significant factor bearing on market prices. Here, market estimates indicate that the excess supply should start to gradually reduce from the end of this year. For now, Standard & Poor’s continue to anticipate an overall house price decline in Ireland of 13% in 2009 and a further dip in 2010.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Between February 2007, when the market peaked, and July 2009, prices have fallen by 24%. Oversupply is proportionally less dramatic in Ireland than in Spain, but it is nevertheless a significant factor bearing on market prices. Here, market estimates indicate that the excess supply should start to gradually reduce from the end of this year. For now, Standard & Poor’s continue to anticipate an overall house price decline in Ireland of 13% in 2009 and a further dip in 2010.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Furthermore, conditions in the Spanish housing market continue to reflect a significant oversupply, a situation that market commentators believe may take six or seven years to unwind. As a result, the Spanish market appears poised for an extended period of adjustment, with prices declining until 2012, according to Standard & Poors.

Ireland's property market also remains depressed.

Between February 2007, when the market peaked, and July 2009, prices have fallen by 24%. Oversupply is proportionally less dramatic in Ireland than in Spain, but it is nevertheless a significant factor bearing on market prices. Here, market estimates indicate that the excess supply should start to gradually reduce from the end of this year. For now, Standard & Poor’s continue to anticipate an overall house price decline in Ireland of 13% in 2009 and a further dip in 2010.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Between February 2007, when the market peaked, and July 2009, prices have fallen by 24%. Oversupply is proportionally less dramatic in Ireland than in Spain, but it is nevertheless a significant factor bearing on market prices. Here, market estimates indicate that the excess supply should start to gradually reduce from the end of this year. For now, Standard & Poor’s continue to anticipate an overall house price decline in Ireland of 13% in 2009 and a further dip in 2010.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

In European housing markets, signs of bottoming out similar to that of the U.K. remain difficult to find.

With rising unemployment and low wage growth trimming back earnings growth in Spain, for example, market fundamentals are little improved over the past 12 months.

Furthermore, conditions in the Spanish housing market continue to reflect a significant oversupply, a situation that market commentators believe may take six or seven years to unwind. As a result, the Spanish market appears poised for an extended period of adjustment, with prices declining until 2012, according to Standard & Poors.

Ireland's property market also remains depressed.

Between February 2007, when the market peaked, and July 2009, prices have fallen by 24%. Oversupply is proportionally less dramatic in Ireland than in Spain, but it is nevertheless a significant factor bearing on market prices. Here, market estimates indicate that the excess supply should start to gradually reduce from the end of this year. For now, Standard & Poor’s continue to anticipate an overall house price decline in Ireland of 13% in 2009 and a further dip in 2010.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Between February 2007, when the market peaked, and July 2009, prices have fallen by 24%. Oversupply is proportionally less dramatic in Ireland than in Spain, but it is nevertheless a significant factor bearing on market prices. Here, market estimates indicate that the excess supply should start to gradually reduce from the end of this year. For now, Standard & Poor’s continue to anticipate an overall house price decline in Ireland of 13% in 2009 and a further dip in 2010.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Furthermore, conditions in the Spanish housing market continue to reflect a significant oversupply, a situation that market commentators believe may take six or seven years to unwind. As a result, the Spanish market appears poised for an extended period of adjustment, with prices declining until 2012, according to Standard & Poors.

Ireland's property market also remains depressed.

Between February 2007, when the market peaked, and July 2009, prices have fallen by 24%. Oversupply is proportionally less dramatic in Ireland than in Spain, but it is nevertheless a significant factor bearing on market prices. Here, market estimates indicate that the excess supply should start to gradually reduce from the end of this year. For now, Standard & Poor’s continue to anticipate an overall house price decline in Ireland of 13% in 2009 and a further dip in 2010.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Between February 2007, when the market peaked, and July 2009, prices have fallen by 24%. Oversupply is proportionally less dramatic in Ireland than in Spain, but it is nevertheless a significant factor bearing on market prices. Here, market estimates indicate that the excess supply should start to gradually reduce from the end of this year. For now, Standard & Poor’s continue to anticipate an overall house price decline in Ireland of 13% in 2009 and a further dip in 2010.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

With rising unemployment and low wage growth trimming back earnings growth in Spain, for example, market fundamentals are little improved over the past 12 months.

Furthermore, conditions in the Spanish housing market continue to reflect a significant oversupply, a situation that market commentators believe may take six or seven years to unwind. As a result, the Spanish market appears poised for an extended period of adjustment, with prices declining until 2012, according to Standard & Poors.

Ireland's property market also remains depressed.

Between February 2007, when the market peaked, and July 2009, prices have fallen by 24%. Oversupply is proportionally less dramatic in Ireland than in Spain, but it is nevertheless a significant factor bearing on market prices. Here, market estimates indicate that the excess supply should start to gradually reduce from the end of this year. For now, Standard & Poor’s continue to anticipate an overall house price decline in Ireland of 13% in 2009 and a further dip in 2010.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Between February 2007, when the market peaked, and July 2009, prices have fallen by 24%. Oversupply is proportionally less dramatic in Ireland than in Spain, but it is nevertheless a significant factor bearing on market prices. Here, market estimates indicate that the excess supply should start to gradually reduce from the end of this year. For now, Standard & Poor’s continue to anticipate an overall house price decline in Ireland of 13% in 2009 and a further dip in 2010.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Furthermore, conditions in the Spanish housing market continue to reflect a significant oversupply, a situation that market commentators believe may take six or seven years to unwind. As a result, the Spanish market appears poised for an extended period of adjustment, with prices declining until 2012, according to Standard & Poors.

Ireland's property market also remains depressed.

Between February 2007, when the market peaked, and July 2009, prices have fallen by 24%. Oversupply is proportionally less dramatic in Ireland than in Spain, but it is nevertheless a significant factor bearing on market prices. Here, market estimates indicate that the excess supply should start to gradually reduce from the end of this year. For now, Standard & Poor’s continue to anticipate an overall house price decline in Ireland of 13% in 2009 and a further dip in 2010.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Between February 2007, when the market peaked, and July 2009, prices have fallen by 24%. Oversupply is proportionally less dramatic in Ireland than in Spain, but it is nevertheless a significant factor bearing on market prices. Here, market estimates indicate that the excess supply should start to gradually reduce from the end of this year. For now, Standard & Poor’s continue to anticipate an overall house price decline in Ireland of 13% in 2009 and a further dip in 2010.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

Spain and Ireland, where excess supply makes any market recovery a distant prospect, could also experience a further relapse if monetary policies were to tighten in the Eurozone.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.

“If, as we expect, economic activity continues to gain momentum in the largest economies of the single currency zone, we anticipate that the European Central Bank will start signaling the gradual ending of its accommodative policy by the spring of next year,” said Six.

Any rise in interest rates, however, would penalize existing mortgage holders because over 80% of outstanding mortgages in both Ireland and Spain are at variable rates.