Current UK Property Market
In recent months the housing market in the UK has seen a substantial decline in price. In fact, in January 2009 the value of properties fell by a further 1.3% this taking the total decline to 16.6%.
Whilst searching online it is not hard to find information regarding the current economic climate. It has been reported that the housing market in the UK could fall further still and any improvements are still some time away.
It has been predicted, by the Royal Institution of Chartered Surveyors (RICS) that there will be a further 10% decrease in the number of houses sold, this year. The housing market is currently in the worst position seen in many, many years.
Although house prices will begin to rise again in the year 2011 a further 10% decrease is expected this year, therefore people will have to recognize that the price of their house is currently much less than it was not so many years ago.
Although the market is in this weakened state, there are many people who are still willing to buy. For those who are looking to invest in property this may be the ideal time to do so. With house prices still falling and so many people being faced with homes being repossessed, deals are certainly available.
Due to the current economic climate, house repossession is presently at an all time high. People are struggling to meet their repayments and finding themselves in very difficult situations. It has been predicted that a further 34,000 homes will be repossessed, within the UK, this year.
So what are the main reasons why we have seen such a big decrease in the value of properties in the current UK property market?
(1) Mortgage companies are far less willing to provide finance to those people who want to purchase a home. This is because many people are unsure whether they will have a job or not and whether repayments for these mortgages can be met.
(2) Mortgage lenders are demanding a higher down payment from first time buyers, doing this makes it difficult for the buyer as normally they do not have the money.
(3) People are expecting house prices to fall further, they are unwilling to buy.
(4) Although cuts in the banks base rates have helped to reduce how much peoples mortgages cost, this wont actually help to stop the prices of houses falling further. Even with these cuts, the average cost of a mortgage has not altered that much because 2 or 3 years ago people were remortgaging due to great deals being offered. What many of us do not realise is that over time the banks have been increasing their profit margins.
These are challenging times not just for property buyers, but also for builders and estate agents. A lot of these jobs are going because of the down fall, making the UK economy even worse. - 23196
Whilst searching online it is not hard to find information regarding the current economic climate. It has been reported that the housing market in the UK could fall further still and any improvements are still some time away.
It has been predicted, by the Royal Institution of Chartered Surveyors (RICS) that there will be a further 10% decrease in the number of houses sold, this year. The housing market is currently in the worst position seen in many, many years.
Although house prices will begin to rise again in the year 2011 a further 10% decrease is expected this year, therefore people will have to recognize that the price of their house is currently much less than it was not so many years ago.
Although the market is in this weakened state, there are many people who are still willing to buy. For those who are looking to invest in property this may be the ideal time to do so. With house prices still falling and so many people being faced with homes being repossessed, deals are certainly available.
Due to the current economic climate, house repossession is presently at an all time high. People are struggling to meet their repayments and finding themselves in very difficult situations. It has been predicted that a further 34,000 homes will be repossessed, within the UK, this year.
So what are the main reasons why we have seen such a big decrease in the value of properties in the current UK property market?
(1) Mortgage companies are far less willing to provide finance to those people who want to purchase a home. This is because many people are unsure whether they will have a job or not and whether repayments for these mortgages can be met.
(2) Mortgage lenders are demanding a higher down payment from first time buyers, doing this makes it difficult for the buyer as normally they do not have the money.
(3) People are expecting house prices to fall further, they are unwilling to buy.
(4) Although cuts in the banks base rates have helped to reduce how much peoples mortgages cost, this wont actually help to stop the prices of houses falling further. Even with these cuts, the average cost of a mortgage has not altered that much because 2 or 3 years ago people were remortgaging due to great deals being offered. What many of us do not realise is that over time the banks have been increasing their profit margins.
These are challenging times not just for property buyers, but also for builders and estate agents. A lot of these jobs are going because of the down fall, making the UK economy even worse. - 23196
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posted by X - Men @ 9:45 AM
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