Is the UK property market dead?
As the UK property market continues to come under severe pressure and head downwards there are many people suggesting that the market may not recover for anything up to 10 years. However, these are probably the very same people who believed that the boom times in the UK property market would continue indefinitely and never saw the current recession arriving on the UK shores. So is the UK property market dead?
As with any investment there is a necessity for a strong stable economy and future potential for medium to long-term growth. At this moment in time there is no doubt that with liquidity levels very low and demand for UK property apparently diminishing every month, the short-term outlook is very mixed to say the least. However, once the economy stabilises and liquidity levels rise this could and should create an atmosphere in which the UK property market could prosper.
Whether there will be a short to medium-term hangover due to the excessive housing assets on offer remains to be seen, but longer term the UK is very much a property oriented economy and the sector should recover in due course. Quite what it will take to turnaround the current situation remains to be seen but at some stage both domestic and overseas investors will begin to see value in the UK property sector.
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