Current UK Property Market
As we have all seen in recent months, the price of houses in the current UK property market have been in decline. In fact, in the last few months we have seen the price of UK homes falling quite substantially and in January 2009 the value of properties fell by a further 1.3%.Which now makes the total decline percentage at 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.
In fact, the Royal Institution of Chartered Surveyors (RICS) in the UK are predicting that in 2009 we will see a further 10% decrease in the number of homes being sold. They are currently reporting that less than one home is being sold each week, which is the worst condition the housing market has faced in the last 30 years.
When it comes to the UK property market, only those sellers who are prepared to accept that their home is worth far less than it was last year are going to benefit. As mentioned; although house values are going to fall another 10% in the coming year. The RICS predicts that sales of homes will begin to pick up once more in 2011.
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.
Within the next year the finance industry expects to see an increase in houses being repossessed. This is as home owners struggle to meet mortgage repayments. They are predicting that in the current UK property market; a further 34,000 homes will be repossessed.
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 lending less and less, so people are finding it very difficult to find a mortgage.
(2) In order to obtain a mortgage, finance companies require the buyer to provide a much larger deposit. So for first time buyers, being able to get a mortgage to buy their first home has virtually become impossible.
(3) As house prices fall, many buyers are holding off from buying more as they think prices will drop further.
(4) Bank base rate cuts still have not changed peoples minds in remortgaging, even with the cuts the average mortgage has not altered within the 2-3 years.
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.
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