Are house price rises a good thing?

Over the past few weeks there have been a number of positiveindicators that the housing marketing is staging a recovery, or at the veryleast prices have stopped falling.

This may come as some as welcome news for the bewildered Britishbuilding sector and the countless pig like estate agents and greedy home ownerswho are dying to go back to the price rise bubble of the past 10 years.  However is this what we need in the UK.  Should out economy be so dependent on the residentialconstruction industry?

The resultsof the 2008 ASHE show that median weekly pay for full-time employees in the UKgrew by 4.6 per cent in the year to April 2008 to reach £479. Median earningsof full-time male employees was £521 per week in April 2008; for women themedian was £412.

It was the availability of cheap credit and lacks controlsof many of our financial institutions that got us into this mess.  This resulted in the average house price risingto 180,000 at its peak, whilst the average income roughly tracked retailinflation at a steady 2-5% pa over the last ten years.

"As a society we need to decide that if we want to live in a four bedroom house with a x5 parked on the drive it should be a question of how much money i can earn, not how much credit I can access." 

The government of the day seemed unwilling to say in publicwhat many of us industry insiders knew which was this housing bubble is unsustainable.  Instead what we got were ever more ridiculousschemes being announced to help first time buyer got on to the housing ladderand the banks lining up to oblige with ever more risky lending practise.

But enough of the past..

Looking to the future do we want house prices to rise?  Contrary to the current evidence, we at www.UKhousing.compredict that the worst in not yet over, and that government has constructed an artificialstabilising mechanism which has successfully halted the downward spiral.  If anyone is old enough to remember blackWednesday you'll now that governments can not buck the market, and that whenthe housing market supports are removed we will see an accelerated increase inrepossession.

What do you think?

It was more doom and gloom from the Royal Institute of Chartered Surveyors this week with news that house prices had continued to fall. The number of surveyors reports a decrease in prices was 76%, up from 74% in the previous month. However, the same surveyors also noted that the numbers of buyers had increase by 16%. I first read this story with a feeling of trepidation as this inevitably means more bad news for the property market, but it later made me think that if things were that bad no-one would be buying at all! 

January in particular has been reported to be a very positive month for property, especially in London of all places. This increased buying could actually stimulate the market and generate a recovery. I read an article here that supported this and even showed that First Time Buyers actually increased in the beginning of 2009. If the property was actually in such a state, then the first time buyers would definitely be the ones who would not be in the mood to buy property. However, seen as this cannot get any lower and we have maybe reached the bottom of this recession, the road to recovery is definitely on the horizon and this might be encouraging people to take advantage of the current market. 

This isn't the sign that we are definitely on the road to recovery as we need to make finance easier to obtain. This does mean that some things could be made easier for some people and the thought of selling your house doesn't have to be locked to current state of the market. If you're looking for a houses for sale uk, buy now and contribute towards the recovery.

If we were all to take note of the constant doom and gloom in the current financial situation of the UK, I’m sure that no-one would even leave the house for fear of losing money or at best – to save money! However, with the inevitable cycle of boom and decline there are some good things to be aware of…or are there?

Reading a current online article about UK house prices crash, I was reflecting on the housing boom period that was fuelled by such programmes as Property Ladder or Location, Location, Location. Since we have all been told about the housing market being as safe as ‘houses’ and that the market could not crash, it comes as no surprise that we don’t see these programmes at the moment. 

But this is not all doom and gloom. Reading another article on the BBC it was reassuring to see that property sales rose in October for the second month in a row according to the National Association of Estate Agents (NAEA). This means that sellers were being more realistic with their asking prices stimulating the market to buy.

As people have realised that they need to cut prices in order to sell it now becomes evident that the sellers no longer hold all the aces. People are looking for better prices and this requires the selling price to fall – below what they wouldn’t have considered a year ago. As saving money in on everyone’s mind there are other ways of getting around the reduction in house prices.

Taking control of your finances and reducing the costs is a winning way. With the mounting Estate Agent fees together with HIPs and stamp duty, the reduction in the selling price makes things really tight. However, there is one way to reduce these costs – sell your house privately.

By listing your own house without an estate agent you can manage the costs of advertising as well as the overall selling price. Imagine removing all the heartache of finding the right estate agent and deciding on the right selling price? Selling your own home can be a stressful experience and using the service UKHousing.com provide can make this simple and save you thousands. With 70% of house hunters going online to look for a property what better way to make the most of the current market and sell your house privately?

Why not think about how much you can save if you sell your own house and balance out the reduced selling price? Its simple and UKHousing.com can help.