The housing market is subject to many opinions and myths, which later turn out to be incorrect. The UK housing market is particularly volatile and unpredictable. In recent years, there have been two substantial crashes, which many didn’t predict at the time. Yet, despite two house price crashes, UK house prices continue to remain much [...]
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How Housing Market Affects the Economy
How the housing market and changes in house prices affects the rest of the economy, including how the housing market affects economic growth, inflation, interest rates and the banking sector. Wealth Effect. A rise in house prices creates an increase in wealth for householders. As a consequence of this increase in house prices, householders will [...]
UK House Prices Statistics 2012
UK House price statistics for 2012. In 2011, UK house prices were broadly flat. There was a mixture of news with house prices almost undecided which way to go. In 2012, UK house prices are likely to fall because: Double dip recession. Economic growth stagnant and high unemployment House prices still unaffordable for many first [...]
House Price Growth
House Price Growth in the UK in the past 15 years. After experiencing a fall in house prices of 25%, UK house prices look to be stabilising, however, they are stabilising on thin levels of housing transactions. Many homeowners and the government will be hoping for greater sustainability in the housing market rather than the [...]
Collapse in House Prices
A dramatic graph showing how much house prices in UK are falling. Despite a radical cut in interest rates to 3%, house prices are likely to keep falling in 2009. Why are House prices falling so much Economic recession – rising unemployment increases number of home defaults. – People don’t want to buy with so [...]
houseprices.co.uk | Guide to UK House Prices
There are various measures of tracking house prices in the UK. There are several different house price surveys that give different perspectives on the state of the housing Market. It can become a little confusing because almost every week, there will be 2 or 3 different surveys, giving a different figure for average house prices. [...]
History of UK House Prices Real and Nominal
UK House Prices Between 1975 and 2007 Q4: Nominal House prices increased by 1,672% or £174,000 Real terms house prices increased by £119,085 or 164% Note there is a much bigger change in nominal prices than real prices. It also means that with house prices falling now, the real effect is even greater. If house [...]
How Would Recession Affect House Prices?
There are concerns that the UK could enter into recession. If this is the case, it would further weaken the UK economy. A recession would lead to higher unemployment and lower consumer confidence. Both these factors would have a negative impact on the Housing Market. Because housing costs are such a large % of income [...]
The Effect of Second Homes on House Prices
Rising demand for second houses has caused higher prices, especially in local property hotspots such as tourist areas like the Lake District. This can cause economic problems. In particular, local first time buyers may be forced out of the market. Therefore, they will either have to rent, or they may be encouraged to leave the [...]
Why are UK House Prices Falling?
1. There is a shortage of Mortgage Finance. This is probably the biggest factor at the moment. Since the credit crisis of 2007, when many US subprime mortgages were defaulted on, there has been a shortage of available finance. Because banks lost money lending in America they are reluctant to lend to new homeowners. British [...]
