With the economy looking not so bright in the UK 2011 and the interest rates still low we can only hope that the property market can continue to ride the wave and not suffer any further value loss this year.
There is talk that the value of property could dramatically slump, starting this year.
This can be put down to the prospect of interest rates rising in the UK this year, the general lack of buyers, banks not lending and the unstable market creating fear for anyone that intended to buy a property.
If interest rates start on an upward trend, as predicted in the UK, the outcome could be very bad for the value of property. As the rates rise again, so will the cost of borrowed monies. Currently thousands of homeowners in the UK are struggling to pay off their monthly debts and of cost mortgages rising will cause more household despair. Thus resulting in a rise in UK repossessions. As this happens, with more and more families forced out into the streets, more and more property in the UK becomes available onto to market with no buyers. This causes a continued spiral down in UK property value.
Interest rates have never been so low and of course helpful to the household monthly bills. How long and this be kept this way? A 400,000 (UK) pound mortgage 3 years ago could have cost 2000 pounds a month in England. Today it can cost as little as 800 pounds per month as the interest rates in England are currently very low Hence many families have been able to hold onto their properties even in the current hard times. When these rates start going up, as predicted for us in the UK, it can spell real trouble for our housing market.
On the other side of the coin, it can really help the first time buyers get on the property ladder, should the values within the UK housing market start to go down. Key workers and potential first time buyers living within and around the big cities have been locked out for a long time now.
Lets hope that 2011 marks some good growth, success in the British Pound and a stable property market, all well managed by the UK government and the lending banks.
Author Resource:
Daniel Zane is the owner of London property inventories one of the UK's leading suppliers of property inventories .
![[Valid RSS feed]](http://www.look4articles.com/images/icon_Rss.png "XML Feed For RSS"){kind=icon}
Category Rss Feed
Print This Article
Add To Favorites
![[Valid RSS feed]](http://www.look4articles.com/images/rss.jpg "XML Feed For RSS")