Should I believe in recent press coverage of a pending fall in UK house prices?

Question

Looking for recent commentary on the topic from good sources

Answer 1

Here is a very good (and recent) article in the FT about house prices: http://www.johnkay.com/in_action/468
According to John Kay, we are not currently in a bubble in the UK because most people who currently buy are planning to live in their house (i.e. speculators who intend to make short term profits represent a small part of the overall market).
Moreover, his opinion is that prices in cities like London reflect the location rather than the accommodation itself, and since location is a scarce resource, there is no reason why prices for houses in the most demanded location should fall.
Hope this helps!

Answer 2

have no published commentary, but bear with me and this scenario.
5 people earn 30,000 a year and can thus borrow 3.5 times income or £105,000
5 other people earn 20,000 and want to buy a house but based on the historic income multiple can only borrow £70,000

There is a property on the market for 100,000 and only 5 able buyers

Suddenly a bank says to the other five, we will lend you 5 times your income, thus now there are 10 competing buyers.

We have seen demand increase but supply say the same, thus the law of economics dictates increases in prices. My only concern is this crazy government and the mess they are making of the economy, and bleeding it dry- thats the big risk in my opinion.

Answer 3

I do not know how your housing market was made, or if it is honest but if it is like the US there will be a big bust, check out this web site and see if there are the same bad business practices there as hear.

http://www.breakingbubble.com/index.htm