UK Housing Market To Grow Another Year
Consumers who are wondering whether they should fix up their current residence and make a profit have another year to solidify their plans. Hometrack predicts that the UK housing market expects a four per cent growth through 2007,
The current range of factors influencing the market is unprecedented leaving no real way to measure a realistic outcome. However, Hometrack sees a solid sellers- market supporting solid house price growth.
“The housing market is moving into uncharted territory as we enter a period of low growth and lower turnover, a trend not seen since the 1950s,” said Hometrack research director Richard Donnell.
“The problem is that low levels of liquidity in what is an already illiquid market are likely to increase the short term volatility in house prices.
“This is likely to impact on asking prices more than underlying values.”
The Bank of England’s secrecy about whether they plan to increase interest rates again, and unpredictable unemployment will increase the short term uncertainty.
Some reports state that the housing prices will continue to rise 4 per cent. The location of the property is the defining factor. Consumers in high demand areas can sell at a huge profit.
Some consumers are already borrowing secured loans with low early repayment fees, and fixing their homes up. Then, they are prepared to move into a rental until the housing market drops, which is predicted to happen in two years. However, like all speculation, there is no guarantee that the market will fall. Some sources claim the housing markets will continue to increase for five years.