2008 has been a bad year for house prices. Of course, it is excellent news for those who have been priced out of the market. It may even help regional economies like London attract key workers. However, it is bad news for speculators and estate agents who have seen house prices fall and the number [...]
Mortgage lending in the UK has slumped by 32% since this time last year. This has contributed to significant falls in house prics. House prices have now fallen by £17,000 since the start of the year. This represents almost a £100 decline in house prices per day during 2008.
It is estimated that the average house [...]
The early 2000s saw a worldwide boom in house prices. In many countries, house prices increased faster than average incomes. In many countries, house price to incomes ratios reached an all time. For this reason, many feel that house prices are badly overvalued and therefore, it is only to expected that there is going to [...]
Demand for housing in the UK can be quite volatile. These are some of the main factors which influence the demand for buying houses in the UK.
Interest Rates
The majority of UK homeowners still prefer to take out variable mortgage rates (unlike the continent where fixed rate mortgage deals are more common). Therefore any change in [...]
Why The UK Housing Market Experiences Boom and Bust Economic Cycles
A boom and bust cycles refers to the rapid increase in prices, followed by a period of falling house prices. This has occured on numerous occasions in the UK housing market, most notably during and after Lawson boom of the late 80s
Reasons For Boom and [...]
MPC member David Blanchflower warned that a downward correction in house prices could reduce house prices by 33% in the next 2-3 years. He points that the current levels of house prices are fundamentally unaffordable and this could cause a major correction that could last through 2009 to 2010.
The decline in prices has been precipiated [...]
UK house prices fell in the past 12 months. It is the first time house prices have fallen year on year since 1996. House prices peaked in July of 2007 and their pace of decline has accelerated in the past couple of months.
The main factors currently dragging house prices down include:
Fall in mortgage finance. The [...]