Are property prices in the UK going to go down this year?

Question

Economists and bankers and estate agents can't agree on this so I want YOUR views. I think there might be a fall because there's so much debt around, and first-time buyers can't afford to buy, plus look at the US) and I'm thinking of selling up and renting. What do you lot think?

Answer 1

you're right there dude..

it'll FALL, those who are suited up and living in NODDY land don't know CACK!..they're just paper qualified and over paid.

look at it this way, everyone is in DEBT up to their eyeballs, i estimate 80% of all spending is on 'NON-existent funds i.e. credit cards'..

as you mentioned, 'first time buyers can't afford to buy'..which means, no buyers = no market = over supply = fall in prices...

but as usual, i'm sure the 'SLIMY' Government will think of other ways to make us part with our CASH...

Afterall, a society in DEBT is a STABLE and WILLING crowd!

Answer 2

Unlike the US, where over-supply has depressed prices, here in the UK we still have a housing shortage in the areas where most want to live. While share prices may follow the US, house prices don't.

City bonuses have been fuelling the house price explosion, and that is the only factor I can think of which could bring prices down. The answerer who said "everyone is in debt" is wrong. I'm not, and have been waiting for prices to fall before investing in more property. Bet I'm not the only one.

So, my answer is: yes, but not much. Don't sell up unless you dislike where you live. If you want to make money on your property, let your home out and rent somewhere cheaper.

Answer 3

The prediction is that by the end of 2007 house prices will start to fall - no great surprise really as the increases we've seen over the last decade cannot be sustainable (more homes are getting repossesed than ever before due to people struggling to make repayments) The fall will only be slight to start with but it could continue into 2008 too.

Answer 4

a lot of very pessimistic people here. I would suggest a contrary view. Interest rates have just about peaked. there is a lot more demand for housing, lenders are lending a increasing higher multiple of income, I see no chance of market crashing!!!. some buy to let property will come back on the market and there will be some repossessions but all in all if u can meet the repayments you will be safe for a long time. in the long run property will increase above rate of inflation

Answer 5

Yes, as you say the level of personal debt is unsustainable, people are relying on their homes increasing in value to pay of their other debt. Apparently sub prime mortgages now account for 26% of the market, these are people who are habitual non payers, the slightest hike in rates means they can't afford to pay their mortgages, resulting in repossessions.
I don't know whether I'd sell up, by renting you're just paying off someone elses mortgage, I'd rather pay off my own even if the value of it decreases, I will still own it outright in the future.
I remember the crash of the early 90's, we'd just bought a flat which halved in value. We rented it out when we bought a house and sold it in 2001 for a £10k profit. that's a pretty good return in 11 years.
Property will always increase in the long term. It is dangerous for those who rake up huge credit card or personal loan debt and rely on a quick increase to clear that debt. These are the people who will get their fingers burnt.
However, when those houses which have been repossessed come on the market they, in turn, will push up prices.

Answer 6

Sell. If you have significant equity in your home, cash out. Let's assume you own a house and its value is 500,000. If the market drops 10% can you afford to loose 50,000? Always sell in a up market - stocks, bonds, real estate - it doesn't matter always sell in an up market.