In recent months the housing market in the UK has seen a substantial decline in price. In fact, in January 2009 the value of properties fell by a further 1.3% this taking the total decline to 16.6%.
Whilst searching online it is not hard to find information regarding the current economic climate. It has been reported that the housing market in the UK could fall further still and any improvements are still some time away.
In fact, the Royal Institution of Chartered Surveyors (RICS) in the UK are predicting that in 2009 we will see a further 10% decrease in the number of homes being sold. They are currently reporting that less than one home is being sold each week, which is the worst condition the housing market has faced in the last 30 years.
RICS have reported that house prices will plummet a further 10% and sales of homes will not pick up again until 2011, therefore people will have to accept that their homes are now worth less than they were a few years ago if they are going to go on.
As the current UK housing market has been weakened somewhat there are excellent deals available to first time buyers and people looking to invest in property alike. Many houses are being repossessed and resold at a cheaper rate. It is therefore a excellent time to buy, although not such a excellent time to sell houses within the UK.
Within the next year the finance industry expects to see an increase in houses being repossessed. This is as home owners struggle to meet mortgage repayments. They are predicting that in the current UK property market; a further 34,000 homes will be repossessed.
listed below are some of the main reasons why the UK property market has fallen dramatically over the last year.
(1) There are many people out there that are worried about losing their jobs and making repayments. This is making a lot of mortgage companies wary so they end up holding back on lending.
(2) First time buyers are finding it virtually impossible to get on the property ladder because lenders need a higher down payment.
(3) People are expecting house prices to fall further, they are unwilling to buy.
(4) Bank base rate cuts still have not changed peoples minds in remortgaging, even with the cuts the average mortgage has not altered within the 2-3 years.
Above we have looked at the reasons why the UK property market looks the way it does. As we watch the market closely, there certainly seems to be no chance of the problems easing for many homeowners in the coming months. But it is not just homeowners who are suffering with this current slump. In recent months there have been many construction workers laid off and many estate agencies closing.
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