Mixed messages……….whats going to happen to the UK housing market?
Well i never! As predicted by me 2 years ago, the housing market is showing many signs of slowing down, but reports in the media are giving mixed messages. Some organisations are predicting doom and gloom, some people are saying its still going up, but if so, who are buying these houses? Its definately not first time buyers, there are hardly any left!!!!!!!!!!!!!!!
Most of the lower end of the market used to be bought by people like me to get on the first run of the ladder. These new proud owner occupiers often spent a lot of time, money and care on their homes. Not any more………….
In our experience, and from quite a bit of research, the first time buyer is rapidly becoming redundant, and the cheaper homes, the “doer uppers” are , or at least have been up until now, been bought by “buy to let” landlords, but with the market showing clear signs of slowing down, and with plenty of interest rate rises, more and more people are now sitting tight to see what happens. Anecdotal evidence also suggest that homeowners, faced with interest rate rises, declining prices in some areas (especially for flats), they aren’t so keen anymore!!!!!!!!!
On the bbc website, we found the following mixed messages. Report number 1 issued on the 30th August indicated that “There are now “clearer signs” that demand in the housing market has slowed, according to the latest property survey from the Nationwide.”
http://news.bbc.co.uk/1/hi/business/6969904.stm
…however, on THE VERY SAME DAY THEY REPORTED THAT ”
“The number of new mortgage approvals in the UK remained steady during July, the Bank of England has reported. A total of 115,000 new mortgages were agreed last month, surprising analysts who had been expecting a fall as a result of rising borrowing costs”
http://news.bbc.co.uk/1/hi/business/6970393.stm
So if the bbc dont know whats going on, how do the rest if us?????????
And today (10th September), they print this ”
Average house prices in the UK are accelerating again, according to the Department of Communities and Local Government (DCLG). Its latest survey shows that in July prices across the country rose by 2% to an average of £218,479.”
http://news.bbc.co.uk/1/hi/business/6986770.stm
…….does anyone know whats going on with the british housing market? I blimmin dont!!!!!!!!
My own predictions are thus………………..
Houses are at their most unaffordable, despite their being strong demand (as the government has let into this country millions of people without any thought as to where they should live), interest rates are starting to bite and could rise further, gullible people who don’t understand economics have thought that house prices will ALWAYS go up (they wont), and people have been very greedy. Buy to let landlords have flourished, (easy money eh?) and , well, I could go on, but wont as a tenant myself I am getting quite angry writing this!!!!!!!!!!!!!
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