Are UK house prices going to crash?

Question

i really want to buy my first property. but, is tghis the right time? do u think prices will continue to rise and that i should get on the ladder now, or that the prices are too high now and there will be a crash?

Answer 1

There won't be a crash, too many people want property as its the only real investment these days. You should get on the ladder now before prices go up again.

Answer 2

As long as you are in a secure job, and are thus as sure as you can be that you will be able to meet the monthly mortgage payment as well as the council tax and all the other outgoings, then go ahead, Tess. The property market is cyclical - boom and bust - but overall, prices rise (well, we live on a fairly crowded island and they aren't making any more land, are they?).

I guess that the first home you buy won't be the one you live in for the rest of your life. If there's a bust soon after you buy, then the fall in value might leave you without enough for a deposit on your next home. If that happens, you will just have to sit tight until the next boom starts, before you can move on. As long as you can cover the payments while you are marking time like this, then all should be well.

A warning, though - interest rates (including mortgage rates) seem to be going up just now, so don't borrow up to the absolute maximum which your income will stand. A loan of (say) £150,000 at 6% will cost around £750 a month in interest, but if the rate rises by just 1%, the monthly interest will go up by around £125, and that's £30 per week. I'm sure it is mainly rises and falls in the interest rate which govern property prices, because buyers are more concerned with whether or not they can afford the monthly payment than with the actual asking price.

Good luck, and console yourself with the thought that if the value of your first, modest, home drops by £10,000, those whose homes are worth twice as much can wave goodbye to £20,000. As long as yours is worth enough to give you a deposit on home no. 2, that's the time to move!

Answer 3

Hi!The sooner you get on the property ladder the better, that's my advice! we got our house last year and could already make a fat profit from all the work we have done!! don't rush in though, pick somewhere which has potential and take everything into consideration when you are looking. This is the quietest time for looking just now, not a lot of people are interested in buying/selling at christmas but keep your eyes peeled cos you might get a good deal like we did cos we moved in exactly a year ago and got our house a lot cheaper than we would have in the summer! & it helps if noone else is interested in the property so get looking & viewing & hope you find somewhere nice!!!! goodluck!

Answer 4

I think a lot depends on wether interest rates remain stable and fairly low. I think prices will slow down as people are becoming more and more stretched trying to afford property. People talk about the great profit they make on their property when they sell it but how much do they have to pay for their next house? I don't think theres going to be a massive crash unless theres a big rise in the interest rate, so unfortunately, you might as well join the mass hysteria of house buying. but keep your fingers crossed behind your back.

Answer 5

I do not know how it is over there ,but if it is like in the states it will crash and big time. First off look at Japan and there housing market for those who say it can not happen it has just not on there door step.

Is your housing market fair and honest?? if so there should be no problem. A true investor knows any time there are big time profit you better know why or it is a big red flag somebody is lying. Just look at s few recent big time profit and then the crash after the lies came out the .com bust, Enron,Worldcom and there are others.
Check out this web site and see if and why you may have a dishonest market.

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

Answer 6

Price rises will have to slow otherwise we will end up in an almost totally rental society as the only people who will be able to afford to buy will be property developers.

As for a crash, I can't see it happening unfortunately.

Answer 7

A Brown is going to raise taxes,council's are raising charges and to cap it all Brown will raise
taxes again.Interest rates will rise and rise.
People are being fooled into buying property by
hearing sales are soaring.Look local and you'll
see how long houses have been on the market.
Big Bang is coming.Then of course there is Browns 8bn over spending he needs to get back

Answer 8

Nah - I had the same dilemma when I bought my first flat.


EVERYBODY told me not to do it, that prices were sky high, the market was teetering on the edge of a ravine etc etc

One year later I sold the flat for a £35k profit. And that was six years ago.

So go for it - it's always expensive getting on the property ladder but definitely worth it - there's nothing like owning your own place.

Good luck

Answer 9

What goes up, must come down!

But that's not to say prices won't still rise a bit before the crash. I'd say still buy if you can

Answer 10

I;m unsure however the factor that has been neglected so a approaches is that the united kingdom at present has a extreme share of homestead possession in comparison to different ecu countries the place human beings many times purchase whilst they attain their previous due 1930s and 1940s. i'm no longer at present particular what condo fees are doing yet i think they're probably going up. in the south east i've got self assurance there are no longer sufficient residences for lease and so furnish can force fees. i might suspect there'll be extra purchase to allow investors getting into the marketplace, it continues to be a quite youthful marketplace, human beings have been renting out assets for years yet in basic terms in the final 10 have we had off the shelf mortgages to regulate the transaction. This has made this form of investment significantly extra user-friendly. My advice to you is be innovative seek for deals, evaluate determining to purchase assets in regardless of way you could. purchase as area of a set or purchase to allow in an area you could arise with the money for and lease to others, if the area you reside in is purely too costly. there'll likely be a correction yet i would not assume it, the present indicators and indicators don't have it being in all probability. i think of it rather is probably wishful thinking on people who prefer to get into the marketplace. could desire to sell somewhat some papers if somebody predicted it yet think of the economic equipment is heading in the direction of even extra effective stability into the destiny. i prefer one too and that i very own assets already yet i do no longer think of it is going to take place.