4 Reasons Why the UK Property Market Will Not Crash
Is it really possible to make money in UK through Property Investment even during recession?
Some people are concerned about the possibility that the housing market in the UK is headed for a crash similar to what has happened in Spain and the USA. While there are some commonalities between these housing markets and our own, the prices here are not going to approach the levels seen in those countries.
How can we be so confident about this? Because the demand for housing far exceeds the supply.
Government projections are that only 100,000 new homes will be built in the UK this year; this is only a quarter as many as are needed before 2009! So until housing construction in the UK can match the large and growing demand for housing, the market is totally safe.
The truth behind hype: why the market is in no danger of a crash.
Some in the media may tell you that the UK is on a course towards Spanish and American style housing crashes, but in truth nothing of the sort is occurring:
1. Spain’s is housing market is struggling because they are still building more housing than there is demand for. While for property investors this is a great scenario, it isn’t so healthy for resellers.
The UK has exactly the opposite problem.
183,000 new homes were built in the UK in 2005. This may sound like a lot of new construction, but is far short of the amount of new homes needed to impact the market to the extent that prices would drop. This would require the construction of 245,000 new homes annually, a goal we are falling far short of at the present.
2. Between 2000 and 2006, the UK’s population rose by 1.7 million, which meant that around 800,000 new homes would be needed. Even though over 1 million homes were built in this timeframe, it was still not enough to account for the demand created by second home ownership.
3. When consumers are looking to buy a new home, they don’t compare their salary against the purchase price of the home, they compare it against the size of their mortgage payments.
While you will hear the argument that the proportion of mortgage payments to household income has grown from 15% in 2001 to 19.6% in 2005, these numbers are still far short of the 34% seen in the housing crash of 1989.
4. As economic growth continues, it is only natural that certain areas have kept pace with demand while others can simply not grow fast enough.
Take full advantage of the market abroad: start building a successful portfolio today.
When you think about the housing crashes in the US and Spain there is another perspective to look at it from – opportunity for property investments.
By investing in Spanish properties, you could bring in an income of more than 500 pounds a month!
It’s a buyer’s market and it’s wide open to UK investors.
You could buy properties for 40% under the asking price! With the right planning, you could buy quite a lot of property in Spain for a very low investment.
With the right property investment course and property investment mentor anyone can decent money in UK. Moreover, smart investers says that recession is the right time to invest on UK properties.