What is Next For The 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%.
As you will soon discover when you search online, there is much being written about the economic crisis that we are all currently facing. It is thought that the housing market in the UK will drop even further and sales of properties are not likely to increase for some time yet.
It has been reported by the RICS, Royal Institute of Chartered Surveyors, that this year we are expected to see a further reduction in the amount of homes being sold, within the United Kingdom. In fact the current housing market is in the worst position seen for about thirty years.
RICS have reported that house prices will plummet a further 10% and sales of homes will not pick up again until 2011, therefore people will have to accept that their homes are now worth less than they were a few years ago if they are going to move on.
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.
During the rest of 2009 it is expected that a further 34,000 homes will be repossessed. Housing repossession is currently at an all time high, this owing mainly to the current economic climate. People are finding it ever more difficult to keep up with their mortgage and rent repayments.
Below are a few reasons why the UK property market has seen a fall over the last year.
(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) Even with cuts in the banks base rates, people still find it difficult to get the mortgage they want. Over the last 2-3 years the mortgage prices have not really moved, people have just been holding off remortgaging.
The property industry is not at its healthiest at the moment, many construction workers are becoming out of work and many estate agents are closing by the day. As stated above, it is a very difficult time for this industry.
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