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.
Share this..
Related stories
RBS Chief Warns That UK Slump Could Last For 15 Months
Sir Fred Goodwin, the chief executive of Royal Bank of Scotland (RBS), has suggested that the UK economy may suffer for at least another 15 months before we see any sign of improvement. Sir Goodwin’s comments have not gone down particularly well in the City, just days after the Group secured a £12 billion rights issue to increase the financial strength of the bank.
There a...
UK government to overhaul benefits system
Iain Duncan Smith, the work and pensions secretary, has this week announced major plans to revamp the UK benefits system and simplify what has become a very complicated process. Under pressure to introduce £11 billion of cost savings from the work and pensions budget, there is a need to ensure that the benefits system does not alienate potential workers from moving away from the benefit system....
Read MoreIs there oversupply in the UK property market?
A number of property surveys in relation to the UK property market have highlighted the fact that the UK market is moving into an "oversupply" situation. When you also take into account that many buyers are now sitting on the sidelines waiting for prices to fall further, the situation could become worse before it gets better. So why have more people decided to sell their property? There is no d...
Read MoreHow did Gordon Brown get it all so wrong?
Despite having a second honeymoon just a few months ago Gordon Brown is today under renewed pressure as rescue package after rescue package fails to stimulate the UK economy. While much of the blame is now being pointed towards the UK government and Gordon Brown in particular, after his long tenure at the Treasury, there are concerns that he has been caught up in a worldwide phenomenon and could p...
Read MoreWill City rents increase in 2010?
A report by property consultants King Sturge claims that the rental values will increase by up to 10.5% in the City of London in 2010. While this is obviously a massive U-turn compared to the 40% collapse in rental values during the recession there is some concern about the basis upon which these forecasts have been calculated. The consultant seems to be ignoring the fact that a number of promi...
Read More