Selling My Home

Why You Should Enjoy UK House Price Falls

More and more gloomy reports about the UK house prices and how they are falling, dinner parties in British suburbs are electric with the groans of house owners who have seen falls in their wealth. None seem to mention that they cannot even contemplate moving up the ladder as the next rung is so expensive that it would be financial suicide.

Please stop all the moaning what did you expect? did you believe house prices would continue going up for ever and ever? House price falls are good in the long term and when they get much lower it will spark a return of the much needed first time buyer. UK house prices were getting out of control being forced up by irresponsible lenders agents and home owners. House price correction is the word, and we should all enjoy it while it lasts. I remember the days when houses were for living not some dodgy share dealers game. Long-term home owners who bought more than five or so years ago will still be be sitting on gains. Homes over history have always made the owners money over a 7 year ownership period.

Now here is the good news!

For the previous 12 months ending in September, house prices across the UK fell 13.3%, according to figures just released from Halifax. The UK’s largest mortgage lender said that the average price of a home has fallen further in the past 12 months that in the property crash of the early 1990s.

The Halifax price index shows that, from May 1989 to August 1995, the average price dropped 13.3%, falling from £70,247 to £60,965. The average price of a UK home now is £172,108, which is £26,000 less than it was in September of 2007. For the month of September, 2008, prices fell by 1.3%. The average price of a home is now below the increased threshold of £175,000 for the government’s stamp duty.

Halifax also announced that it will pass a 0.5% cut in interest rates announced by the central bank along to borrowers. Martin Ellis, chief economist for the firm, said that lower rates will “provide a valuable support for the housing market.” He continued, noting that “The ongoing pressures on householders’ income, combined with the reduction in the availability of mortgage finance, mean that market conditions will remain challenging.”

Unfortunately, average incomes have not increased as much as rising prices over the past year, and mortgage costs have also increased as a result of the credit crisis. The average mortgage rate paid by new borrowers has rising from 5.88% in August of 2007 to 6.10% this year.

Be happy the kids will love it
So be happy about the falling prices and see this as a much needed correction your childeren will appreciate it and so will your childrens children.

Useful Resources
Searches the UK Land Registry database
Properties for sale in the UK
Sell property online

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