UK property market is showing signs of weakness
A report by the Royal Institute of Chartered Surveyors has today cast doubt upon the recovery in the UK property market amid signs that demand is beginning to fall and an increase in the number of houses for sale could put pressure on prices. The survey for June found that on balance only +9% of surveyors questioned reported a rise in prices which was well down on expectations of +20. When you compare this to the figure of +21 for the month of May it is easy to see why concerns are growing.
Despite the fact that the UK government is confident that short-term budget cuts will not impact significantly upon the economy we are starting to see signs of problems in the public sector and in the wider economy. If these problems persist there is no doubt that UK economic growth will be curtailed and indeed there are some concerns we could even move towards a double dip recession. Whether this is the case or not remains to be seen but there are some very challenging times ahead for both the UK property market and the UK government.
When you consider the vast majority of personal wealth in the UK is tied up in the property market it will have a significant impact upon the financial stability and financial well-being of the UK public.
Share this..
Related stories
Reality in the UK property market
A report by the Centre for Economics and Business Research will this week show that UK property prices are forecast to fall by a further 10% during 2009, ruining hopes of a short-term recovery. However, the Labour government will be pleased to hear that the report will also forecast a recovery in 2010, possibly just in time for the next general election. Slowly but surely it appears that Gordon Br...
Read MoreWhy is the UK obsessed with property?
The Liberal Democrats have made a number of observations about the UK economy which have struck a cord with many observers. They are the first party to question the UK's obsession with property which literally rules the UK economy. Unlike many countries around the world, the vast majority of UK citizens own their homes when many countries have a culture of renting. This obsession with owning pr...
Read MoreJust 26% of 20-39 year olds will own a home in 2025
18/11/2015 Only 26% of people aged 20-39 years old will have their foot on the housing ladder by 2025 according to a report from PwC. The professional services network found that almost 60% of people in the 20-29 age bracket will be renting by 2025, and “generation rent” are now more likely to be a lot older than previous generations before they can buy their own home. This has been blam...
Read MoreWill first-time buyers ever get back on the property ladder?
As we see the introduction of the infamous 125% mortgage from Nationwide, even though it is perhaps not as bad as it seems, there are concerns that first-time buyers in the UK will struggle to climb aboard the property ladder. Despite the fact that UK property prices have fallen substantially over the last 18 months there is still a significant gap between what are the average first-time buyer can...
Read MoreAre we in danger of talking down the UK property sector?
Despite the fact that the UK property sector has probably performed better than 99% of analysts had expected in 2009, the recent press has been full of stories about price falls in 2010 and a drop in demand. There is the potential to actually talk ourselves into a property decline in the short term which could prove catastrophic in the short to medium term. Even though it is obvious from the fi...
Read More