Home ownership has fallen sharply as house prices have spiralled out of control. The reason behind it is clear, says John Stepek. And there’s only one way to fix it.
Britain's house price bubble
UK house price indices
The Halifax and Nationwide indices are based on each lender's mortgage approvals, and exclude cash sales. Both are 'seasonally-adjusted' – the market is slower in winter and busier in spring. The Rightmove index is based on sellers' initial asking pricess, and the DCLG (Dept for Communities and Local Government) index is based on data including house prices, mortgages, transactions and land prices.
We could soon see an inflation-driven correction in the housing market. That won’t make anyone particularly happy. But it might be the least damaging solution to the house price bubble.
With a two-year fixed mortgage – the most popular term – you could be shopping for a new mortgage just as the UK leaves the EU. It could be worth fixing your payments for longer, says Ruth Jackson.
Commercial property investors are getting increasingly worried about the market – just as local councils pile in. It’s a recipe for disaster, says John Stepek.
A property crash always unfolds in similar ways: credit runs dry, a priced-out majority stymies demand, confidence falters. Sound familiar? Then prepare for the bear, says Jonathan Compton.
In September, Dominic Frisby picked what he saw as the five worst investments you could make. Today he checks on his “dumb” investments to see how they have done.
The growth in house prices is slowing. That could be temporary. But there are two big vulnerabilities in the housing market that point to a significant slowdown, says John Stepek.
There’s a problem in London’s high-end property market – people just aren’t as keen on luxury property as they were a year ago.
Property developers are selling more and more new houses on a leasehold basis. It’s a terrible deal for homeowners, says Merryn Somerset Webb.
For anyone investing in or building property today, Birmingham is clearly a better place to be doing it than London, says Merryn Somerset Webb.
The problem in the UK housing market is not a shortage of housing but a surplus of speculation called by very low interest rates. Solve that, says Merryn Somerset Webb, and you solve the “housing crisis”.
Don't buy that house!
The positive climate surrounding the buy-to-let sector is unravelling – fast. A rash move now and you could pay a heavy price.
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