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Political Chick
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What Goes Up Must Come Down?

House prices have been rising at an extraordinary rate, there’s one question most people want to know: should I buy now or wait? Tonight had a really interesting debate on whether or not there’s going to be a house price crash. The first case put towards the panel argued that prices will continue to rise; with money continually flooding into London and its success and profitability, the impact will be prices remaining high all across the UK. The average house price currently stands at about £200,000 and those arguing against the crash predicted that house prices will continue to rise by about 15% this year.

Those arguing that a house price crash is inevitable forecast prices would fall by 20 – 30% if not more, by the end of the year. With interest rates rising, demand is likely to slow, which will force house prices down according to some. Inflation is high, interest rates are high and increasing, and borrowing is high – all this will encourage property prices to fall.

There are so many people looking to get on the property ladder that won’t any slight fall in demand be seen as a buying opportunity therefore preventing the crash? The answer is that we’ll have to wait and see. Some advice from the panel was that if you do buy now, only buy what you can comfortably afford or a rise in interest rates could cause real trouble – last year 17,000 homes in the UK were repossessed.

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