Is the UK property market on the verge of collapse?
Today's revelation that the average property price in the UK fell by £6000 in September, compared to August, was a bitter blow for those hoping that the UK market would remain strong in the short to medium term. If we are seeing significant falls in the cost of property in the UK even before the vast majority of government austerity measures have kicked in, the situation in the short term does not look good. So is the UK property market on the verge of collapse?
While there is no doubt that the reduction in September was unexpected and much larger even the most sceptic of economists had feared, we need to take the longer term picture into consideration. Taking one month's figures in isolation is very dangerous in any economic environment but in the current environment it could turn out to be catastrophic. We need to let the trend settle down and see the direction of the UK property market in the short, medium and longer term and indeed try to inject some confidence back into the marketplace.
This will not be easy but we depend upon the UK government and the UK authorities to remain calm in troubled times and take the right action.
Share this..
Related stories
Three-storey love story
Three-storey properties are growing more popular and although most three-storey buyers did not deliberately choose a three-tiered home initially, nearly two thirds of those that own them now adore their extra floor, a new study has shown. National house builder Redrow, surveyed around 1,000 customers living in both two and three-storey properties, and found homeowners could list a wide variety of...
Read MoreUK rental market under severe pressure
The Royal institution of Chartered Surveyors (RICS) has this evening dropped a bombshell on the UK property market with data showing a significant fall in rental value and many estate agents forecasting further downside. The survey revealed that 55% of estate agents expect rental rates to fall over the next three months against just 48% in April. The problem appears to be oversupply in the UK rent...
Read MoreFinancial Services Authority steps in regarding sale and rent back adverts
The Financial Services Authority (FSA) has today stepping to call time on heavy-handed sales practices within the sale and rent back sector. This is an area of the market which has shown significant growth in the short to medium term due to the fact that many people are behind on their mortgages and need cash as quickly as possible. To these people, the potential to sell their homes, organise a re...
Read MoreLives left broken after Hips removed
Despite the fact that the UK government received a warm welcome after removing home information packs from the property arena it seems that hundreds of companies in the UK have effectively been terminated overnight. A number of Hips specialists were formed when the UK government announced their introduction in 2007 and hundreds of thousands of pounds of money was invested into this new and potenti...
Read MoreTax warning for buy-to-let landlords
It is essential that buy-to-let landlords get their tax affairs in order or risk significant fines from HM Revenue & Customs (HMRC), a business advisory firm has warned. Alex McCann of DTE issued the warning to buy-to-let landlords as HMRC continues to target them in a new tax evasion campaign and said that should they be found to be in arrears, landlords could face substantial fines. Mr McCann ad...
Read More