RSS FeedsPrepare for shake up on UK house prices
27/03/2008
Recent research undertaken has unveiled that the UK should prepare for some difficult times in the property price arena. A study by analysts Capital Economics warn the UK is set to face worse conditions than that experienced in USA.
The research links two key contributing factors that could affect the UK’s housing market; these are consumer spending and property prices. Even though the current UK market has not experienced any huge shifts in property prices Capital Economics believe that things will change.
Other statistics such as peoples confidence in spending at an all time low is also believed to play a part in the downfall of the UK property price market. In addition the impact has been compounded by the recent implications of the credit crunch coupled with the 1.4 million fixed rate mortgage deals coming to an end. It was also noted that current UK debt to income ratios are higher than those within the USA.
Vicky Redwood of Capital Economics commented, “The organisation expects UK consumer spending to increase by just 1.5% this year, a marginally bigger rise than is likely in the US.
US spending growth may start to recover next year but UK spending growth looks likely to slow further.