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.
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.
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.
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) First time buyers are finding it virtually impossible to get on the property ladder because lenders need a higher down payment.
(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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