UK Property Market

Property: Reality bites

Property. It’s a hot topic. It was a hot topic for several years as we saw the market boom, and now that it’s being severely impacted by the credit crunch, it has become an even bigger topic of conversation.

Only months ago, I was seemingly surrounded by London commuters, all discussing their next forray into the world of investment property. Finding a doer-upper to make a quick 20 grand profit. All that is now behind us. Now the early morning rush hour is full of frowns (yes, more than usual) as people worry about their mortgage repayments, and the threat of negative equity that’s looming.

If some of the papers are to be believed we are about to become a nation of homeless people, as lenders foreclose on unpaid mortgages and people can no longer afford the homes which are now stretching them to their financial limits.

Amidst this panic and chaos, however, there lies the simple fact that people need homes. At a basic level this means that despite the current turmoil, people will continue to buy and sell homes. Families continue to grow, and soon a two bed terrace simply is not large enough. People change jobs and move to different areas which in turn means a change of home (read “property”).

We’ve had years of complacency towards property being a guaranteed money maker. And this includes people buying homes, rather than investments. So perhaps it is time for a change in attitude (FUE). Maybe we can no longer count on our homes to be our pensions and nest eggs. Perhaps, for now at least, the way forward is to think about them just as homes. A place to rest your head, to care for your family. Ultimately people need to have a roof over their heads, and as long as they have that, is there really so much to complain about?

Share This

• Home Owners Face Uncertainty as HSBC Devalues UK Housing Prices
• One third of house hunters use online services
• Annual Home Price Inflation Down in April
• Invest in Property Being Repossessed with a View to Renting to Existing Homeowner
• Homes Are Sold Faster Without an Estate-Agent

Comments are closed.