Why is the UK property market so fragile?

As we touched on in some of our earlier articles today, the UK property market has on the whole recovered over the last 12 months but the degree of improvement is very varied across different areas of the UK. There is growing concern that both a lack of liquidity in the mortgage market, despite this being a problem for over a year now, as well as a reduction in consumer confidence could well hit the UK property market towards the back end of 2010.

Some experts believe that the improvements forecast for the first half of 2010 could all but evaporate in the latter part of 2010 although this will depend very much upon the worldwide economy and the availability of mortgage liquidity. We are seeing periods of relative interest in UK property which can often be followed by a reluctance from buyers to commit, as issues within Europe and the Far East take centre stage. Just when the UK economic situation appears to be improving, and has been for some time, external factors are coming into play and causing mayhem.

Whether or not we will look back on 2010 as one of the best buying opportunities for UK property in recent times remains to be seen.