Current UK Property Market

Filed in Home Financing on Sep.08, 2009

Due to the current economic climate, in recent months, the UK housing market has been in dramatic decline. A staggering 16.6% decline has been seen, to date with a total of 1.3% of that amassed during January 2009.

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.

The UK housing market has been damaged by the current economic climate therefore a number of houses are being repossessed and resold at a far cheaper rate, therefore it is a very good time to purchase, for first time buyers and people looking to invest in property alike. However, it is not such a good time to sell property within the United Kingdom.

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.

listed below are some of the main reasons why the UK property market has fallen dramatically over the last year.

(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) 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.

Above we have looked at the reasons why the UK property market looks the way it does. As we watch the market closely, there certainly seems to be no chance of the problems easing for many homeowners in the coming months. But it is not just homeowners who are suffering with this current slump. In recent months there have been many construction workers laid off and many estate agencies closing.

Tags: building a home, business, buying, Finance, Home Equity Loan, home equity loans, investing, mortgage refinance, mortgages, personal finance, personal loans, property management, real estate, sales, selling

Home Mortgage and Refinancing

Refinancing home mortgage, refinance home loan, mortgage loan, home equity loan