UK House Price Growth Coming to an End
On my economics blog, I recently posted an article about whether the UK could experience a house price crash
On balance, I feel that a house price crash is unlikely.
- The economy is relatively strong
- House price growth has mainly been based on supply and demand dynamics
- Interest rates are unlikely to rise any further (for the medium term)
- The global credit crunch will continue to create problems, however, the UK housing market can remain strong, even if it is more difficult for people to get unconventional mortgages.
However, although I disagree with the pessimist’s predictions of house price falls of upto 20% it is quite clear that house price growth is slowing down quite considerably.
Many industrial analysts are reporting that house sales are slowing down and demand for new houses is much lower than this time last year. For example, home builder Hovis, predicted a fall in house prices of 3%. Price Waterhouse and Coopers, argue that house prices are 10% overvalued.
- Some arguments for a slowdown in house price growth
- Why house prices may continue to rise
- UK Housing Market
Original post by Tejvan R Pettinger