Recent research commissioned by the BBC has found that the British feel that buying property is better than cash in the bank. The UK housing market like that of the US is now reported to be slowing and with it house price drops are expected. The UK property market looks like it shall be a buyers market with home sellers reducing house prices in order to sell their homes.
House prices and equity in British home owners is the conversational piece at many dinner parties. The reports of first time buyers priced out of an ever increasing market are frequent and depressing for those wanting a foot on the property ladder. British first time buyers have been undertaken some rather extreme measures to buy a property. These include buying cheap property in Bulgaria , buying with property with a stranger and purchasing a house boats.
The British obsession with house prices and property in general has resulted in several TV shows that now have made the presenters like Sarah Beeny household names.
In order to gauge how house prices were affecting people’s lives, the BBC commissioned NOP to conduct research on the issue at the end of last month.
Research for the BBC Two series, The Truth About Property, found 53% of respondents believed owning property was safer than cash.
It is of note however that this poll took place in the aftermath of the Northern Rock crisis, the first run on a British bank in nearly 150 years.
That belief is directly at odds with the view accepted by the overwhelming majority of investment professionals. Financial experts regard cash as safer than property because as long as the bank is solvent, there is no risk to your capital.
