Crisis on stock markets, would there be any effect on UK real estate market?

Answer 1

Not directly, but you may find that Banks are not too keen to lend the large amounts they have been doing, such as 5 or 6 times salary....so may be harder to get a Mortgage for an expensive property.

edit
I think stitched up has got it a bit wrong...the crash in the housing market was more due to the Bank of England having to raise interest rates to over 15% because of our trying to peg the pound to the ERM the European exchange Mechanism in 1992...this resulted in colossal mortgage increases which in turn led to repossessions and a downturn in the buoyant housing market.

Answer 2

Stock market yes. Housing market I seriously doubt. Real estate is determined by demand for housing. As long as people want to live and own houses in the UK, the real estate should remain as it's always been. Though the guy above me is spot on. It will be more difficult to obtain a jumbo loan.
EDIT: Stitched up - That's fascinating. I didn't know that. So was it in the UK that the value plummeted or in the states?

Answer 3

Yes it is going to have a significant effect on the real estate market which is vastly overvalued. The last drop in house prices was 1989-1990 some properties went down by 60% in England.The strains are showing already, interest rates going up, repossessions increasing, people overloaded with debt, etc,etc Bad times ahead you'll see.

Answer 4

Absolutely there would! Remember what happened in the late 80's early 90's. Stock market crash, house prices plummeted, thousands left unable to sell due to negative equity.

Answer 5

It's already affecting the whole world. The Feds pumped in billions before today's close so it wasn't as bad as it could have been.

Answer 6

I think lenders will be more cautious lending to people with a dubious credit history.

Answer 7

I think so - lets face it, when they sneeze, we get a cold!