Why UK House Prices Should Fall
UK House Prices
The UK housing market is a victim of house price rises after house price rises; I say victim as this situation although on the face of it appears good is actually a disaster for a return to a healthy market.
A recent survey from the Royal Institution of Chartered Surveyors shows that vendors are returning a net balance of 15% of surveyors reported that new instructions had increased in October, compared to a 5% in September. This has not affected house prices and this is should be of concern!
House prices in the UK are being driven up by a lack of inventory i.e. lack of people willing to sell and this does not make a booming property market. Buyers seeking bargains will soon give up as prices rise and as you know without buyers there is no housing market.
So why are people not selling? I think this is down not to house price decreases but more about confidence. People selling have an eye on their jobs and stability and at this time confidence is only starting to creep back in. 2010 will be a more positive year as the lagging unemployment figures arte digested and people feel that the worse is over.
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