Reasons for current state of UK property market
Prices are up and down all the time in the property market at the moment and none of us, don’t really know why. But I can tell you my thoughts and few other experts’ thoughts about this whole mess our UK property investment is into.
One of the main reasons this is, is because the demand for house was up but since then companies have been trying to sell their newly developed houses to all of us, and far too many companies did that and now there isn’t enough people wanting to buy houses, so supply over shadowed the demand so now all these companies are in debt with their lenders or banks, so they lower the prices of these houses and so did all the other companies, so people went for them and the people selling their homes, just couldn’t sell them so they have just gone prices so this drove all of the markets prices down, it seems a bit like “this can’t be case, it’s too obvious” well sadly this is the case, and it is still happening. And with the current economic state it just drove them down further and further.
Another reason is the actual economic state being the way it is, people have less money so they have less to spend on a house, so obviously prices had to come down, this pushed all house to become BMV Properties (below market value). And this has pushed people to use no money down deals which are no risk deals.