Another British Housing Bubble?

Wealthy buyers are fueling the recent rise in prices, as Savills points to a second downturn in U.K. property.

LONDON -- Don't believe the hype about a recovery in the British housing market. Recent surveys--including one by Halifax on Tuesday--have pointed to month-on-month home price increases, leading some excited property sellers to think the worst is over.

But British property firm Savills has been quick to dismiss hopes of a sustainable recovery. According to Carrie Scrivener-Leask, associate director of research at the firm, the U.K. housing market will experience a W-shaped recovery.

"Although there's been growth in the property market, we don't see how that growth can be sustained with the current state of the economy and unemployment still on the rise," Scrivener-Leask said, adding that Savills did not expect a sustainable recovery before 2011 or even 2012.

U.K. unemployment rose to 7.9% for the three months to July, according to the National Statistics Office. Euro zone unemployment is currently at 9.6% and the U.S. jobless rate stands at 9.8%.

Her views emerged on the day that British lender Halifax said house prices had risen by 1.6% in September, the third-consecutive monthly increase and the fifth so far this year.

But even Halifax believes this recovery is only short-term.