UK house price forecast
A bit of a mixed week this week in terms of news effecting the property market. On Monday the head of Barclays bank predicted that in 2009 house prices are likely to fall by another 15% down to an overall drop of 30%. This of course means there is likely to be even more bargains around for property investors.
At the same time it was announced that the UK government has pledged an extra £100m to help first time buyers get on the market, a move designed to try and stimulate demand in property and prevent the previously mentioned predicted fall.
Wednesday and Thursday revealed that people on endowment mortgages were now facing massive shortfalls in savings just as their mortgages ended and the final balance needed paying. It was also announced that the number of people facing arrears on their mortgage was likely to rise to around 500,000 households.
This could have the knock-on effect of up to 75,000 homes being repossessed. Bad for home owners but good for investors.
Finally on Friday it was revealed that consumer spending has improved for the second month in a row and the Halifax and Nationwide had decided not to make any house price forecasts for 2009. Halifax state their reason is due to the pending takeover by Llyods TSB and Nationwide pretty much said they couldn’t as the market was too volatile.
Heres a news summary from the last week:
* Fri 19th Dec – Lenders Axe House Price Forecast (news.bbc.co.uk)
* Fri 19th Dec – UK Consumer Confidence ‘Improves’ (news.bbc.co.uk)
* Thu 18th Dec – Mortgage Arrears ‘To Hit 500,000’ (news.bbc.co.uk)
* Wed 17th Dec – Grim Future For Endowments (news.bbc.co.uk)
* Mon 15th Dec – Households Have Less Spare Cash (news.bbc.co.uk)
* Mon 15th Dec – Extra Help For First-Time Buyers (news.bbc.co.uk)
* Mon 15th Dec – UK House Prices ‘To Fall By 30%’ (news.bbc.co.uk)
Low house prices are a property investors dream – the current market is absolutely perfect for a new investor. Cheap properties and high rental demand equals very rich investors!
Equity is not that important as long as a property is generating positive cashflow, and right now there are thousands upon thousands of houses to be found that produce high positive monthly cashflow.
All you have to is know how to find them and buy them and that’s exactly what you will learn from Property Mentor.
Book your free 2 hour property mentor course now
Or