House Prices to Spiral by 10 per cent!
With the austerity drive in full flow, the property investment scenario has become bleak for the sellers – but has become a veritable heaven for buyers as well as property entrepreneurs.
It is no surprise that the house prices in the UK has dropped by a further 0.3% last month, and experts from the property investment arena have predicted a downward slip-up of about 10% in price rates by next year.
The average house is priced at £163,400 – a price that is almost parallel to that in 2009 – £162,800 to be precise! However, unlike homeowners and sellers who are looking at the situation as a bleak prospect, financial experts think otherwise.
For instance, Martin Gahbauer, the chief economist for Nationwide Building Society has compared it positively with the price rates of 2008 (a period when the Economic downturn was most intense), which had been -5% to -6%. He insists that the decline in property prices even after an upswing during the summer of 2010 is because of panicky sellers returning to the sector, rather than an unstable domain.
The Office for Budget Responsibility (OBR) in UK has also seconded this opinion, and going a step further by predicting a 4% to 4.3% climb in house price rates in the years ranging from 2012 to 2014.
However, there are a lot of varied opinions on the falling prices, with some consultancies such as IHS Global Insight predicting a decline of about 10% or more in the coming year. Even though this is a bit tight to predict, most financial experts point to many factors that have influence the drop in property prices – and the Recession or weak property investment prospects are not among them.
For example, Capital Economics has laid out 4 main points for the fluctuation in property and real estate price tags:
- Restricted access to credit in the property markets
- Decline in demand for large scale property and real estate bargains
- Absence of a supportive ambiance for sales
- Scarcity of public sector jobs
However, all of these point to one silver lining among the dark clouds of the UK property market – the prospects for investment for entrepreneurs. Those willing to take the plunge with the help of property management & investment courses can pocket huge rewards down the line.
For with a steadily recovering economy and dirt-cheap property prices, opportunities for property investment agents were never as golden as now!
Wendy xx
