When we use real house prices, the 1989-93 crash is far more significant than just using nominal numbers. Inflation is this period was quite high. Real house prices fell 36% from 1989 to 1995.
See also:
house price trends in UK
Definition of Real house prices – nominal house price growth – inflation.
This gives a better understanding of the relative affordability of house prices. For example, in the late 1980s, inflation reached 11% meaning the nominal house price growth was partly caused by inflation. In the 2000s boom, inflation was much lower. The trend in real [...]
What is Housing Benefit?
Housing benefit is a government benefit to help people pay their rent. It is targetted at people whose income is below a certain level.
Who can Claim Housing Benefit?
Typically, your wealth must also be low. People with over £16,000 of savings will not be entitled to get any housing benefit.
If you get Income [...]
The UK Housing market has proved very volatile in recent years. These articles explain some of the main features of the UK housing market and look at its prospects in future months.
Housing Market Statistics
Why UK suffers from Housing Boom and Busts
Credit crunch and Housing market
Economic Impact of Housing crash
Forecasts for housing market in 2009
History of [...]
As the UK economy continues to experience a deepening recession, what would be necessary for the UK housing market to recover?
Higher willingness to lend. Interest rates are very low, so the cost of mortgages should not be a problem. Some fixed rate mortgages are going for as low as 3%. The problem is banks are [...]
The UK housing Market has a tendency towards being very volatile. The problem with this volatility is that it creates the potential for collapsing house prices. When house prices fall as rapidly as they are at the moment, it leads to negative equity and fall in confidence. Rather than having boom and busts in house [...]
The Housing Market is undergoing a painful readjustment with falling prices and exceptionally low transaction volumes.
In part this reflects the UK economy which is experiencing a steep recession and sharp rise in unemployment [See: UK Economy 2009]
There is a strong link between the housing market and UK economy. One of the main factors behind the [...]
This graph shows the sharp fall in house prices which have occured in the past few months. Most analysts expect further house price falls.
Mortgage lending still frozen. The number of new mortgage approvals is very low. The number of new mortgage loans is 52% lower than October 2007. (already by Oct 2007, mortgage approvals had [...]
House prices continue to fall. Home repossessions continue to rise. Banks are unwilling to lend mortgages and many homeowners are seeing negative equity. In the short term, the housing market is suffering from falling house prices and a great difficulty to get any houses sold.
The current housing difficulties have meant that the government’s target for [...]
Some features of the UK Housing Market and why the UK often experiences Housing market failure.
1. Volatility. The UK Housing Market is characterised by boom and busts. There is a cycle of rapidly rising house prices followed by a sharp crash. This volatility in house prices creates problems for the real economy. When prices rise [...]
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Recent figures suggest annual house prices in the UK have slumped by 15%. However, these statistics may underestimate the true level of house prices.
The low volume of house price sales is indicative of the fact many homeowners are reluctant to cut prices to more realistic levels. Therefore, asking prices are inaccurate guide to the value [...]
The Global financial crisis continues to worsen the state of the UK Housing Market.
Shortage of credit, means that lending criteria remain very strict as banks are reluctant to lend any mortgages. The contraction in mortgage lending and fall in consumer confidence has caused a big fall in demand for houses. THe Halifax reports that house [...]