The UK's independent property help portal
7 June 2007

Could there be a house price crash?

Permalink: Could there be a house price crash?
by Kay Mitchell

Could there be a house price crash?

If house prices continue to rise, could there be a house price crash? Can house prices continue to grow?

In a recent poll released in May 2007 by This is Money, 4,100 people voted on this topic and over the next 12 months, 47% believe that property prices will drop, 41% said they would continue to increase and 12% think they will remain the same. This subject continues to be significant as the UK seems to be obsessed with property. However, is a house price crash a possibility?

According to Nationwide, Halifax, the government and Land Registry statistics, house prices cannot continue to grow and the rumour is that growth will slow to between 3% and 5% per year.

There are concerns that the interest rate will reach the 6% mark and the belief that house prices can’t keep rising is the reason that many are believing there will be a crash. However, the cost of borrowing is still attractive as 80% of new mortgages available are on fixed rates.

Click here to discuss this: Home Move property forums

Related stories to: Could there be a house price crash?

Previous: «
Next: »

Visited 6284 times, 1 so far today