Is The Property Market Going To Crash
Filed Under Property Investment, Property Updates, Residential Property Investment · Tagged: crisis, House prices, property crash, property hotspots, Property Investment, stratford
Property Market - Is It Going To Crash
According to the media the UK property market is free fall - not a day passes without a mention of the current property crisis in the UK. But is the property market in as bad condition as we are lead to believe?
If you are worried about the situation and have been convinced the UK housing market is going to crash like the USA and Spain you are worrying unnecessarily - There may be some similarities between us, but our (the UK) prices will drop less significantly than those of the USA and Spain.
The reason for this confidence is simple economics and the fact that the demand for housing far exceeds the supply.
This year alone (2008) the UK government has predicted we will only build 100,000 new homes - a quarter of the required amount- before 2009. So until the UK can match this demand, the market is safe.
Why The UK Property Market Will Not Crash
1. One of the reasons why Spain is struggling is that they are still building more than they require. The number or available properties far exceeds the population. We have got the opposite problem in the UK.
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In 2005, 193,000 new houses were built. This may sound impressive but to make a real impact on the growth of housing prices and reduce their costs, 245,000 new homes need to be built. And we are far from reaching that goal.
2. In 2000-2006, the uk population increased by approximately 1.7 million this resulted in the need for 800,000 new residential houses. Although 1.1 million were built in this period, these extra 300,000 new houses were insufficient. They could not account for the growth rate of the churn or 2nd home ownership.
3. When UK inhabitants are looking to move home they do not compare their salary to the price of the house. The big mistake they usually make is to actually compare their income to their annual mortgage payments.
Although, it could be argued that mortgage payments - as a share of a household income - has increased from 15% (2001) to 19.6% in 2005, these figures are still well below the 34% recorded in the last property crisis in 1989.
4. It is natural to see fluctuations and property activity in certain areas of the country as the economy grows, but some areas struggle to match these demands. Through a combination of a lack of housing and transport, certain locations have become property hot spots to accommodate this need, but cannot expand fast enough.
Stratford in London springs to mind. Read about Property Investment In Stratford
Is Property A Safe Investment
Throughout the last two decades the UK has survived two property crashes and bounced back stronger than before. Experts predict that by 2010 the housing market will be buoyant once again.
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Property Investment In Stratford
Filed Under Property Updates · Tagged: london, olympics 2012, Property Investment, stratford
Property Investment Opportunities In Stratford
In 2012, Stratford in East London will the centre of the planets focus as the Olympic Games comes to the UK for the first time since 1948.
A major event such as the Olympic Games can put a tremendous strain on the infrastructure of the host city but can also return a high yield of profitability to anyone with a financial interest.
Property Experts predict that investing in property in the Stratford area should achieve higher than average returns in London. This is largely due to the fact that prices of properties, both residential and commercial in Stratford should increase exponentially not only because of the general trend of property appreciation in London, but also due to a massive transformation of Stratford area into a new European business centre with outstanding international and local transport links.
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The transformation of Stratford has already began and will produce the creation of the City Of Stratford and the Olympic Park. A property investor has a golden opportunity right now to jump onto the Stratford Olympic gravy train.
The current position of the property market could not be better for potential property investors. Property prices are still on the way down but slowing and when prices reach their inevitable bottom the rise could be astronomic especially in and around the Stratford Area.
What The 2012 Olympics Mean For Stratford
- Stratford will come the City Of Stratford and become one of the largest urban regeneration projects in not only the UK but Europe.
- The creation of the Olympic Park will be the largest Park built in Europe for over a century.
- The retail sector of Stratford should experience unprecedented growth.
- 450,000 sq m of office space will be created to attract major corporate businesses form Europe.
- Leisure complexes will be created including bars, cafes, restaurants and cinema’s.
- 120,000 sq m of hotel complexes will be built with conference facilities.
- Parkland and public gardens with an estimated 13 hectares of natural ecological friendly habitat.
This is not mention the employed opportunities with the creation over 30,000 permanent jobs an as yet an unestimated figure for temporary employment.
Stratford will become the third most important area of London behind the West end and Knightsbridge in terms of the retail sector.
What Does This Mean To Property Investors
Usually the upgrade in a city or region happens over time and several factors can influence a change in fortunes. The regeneration of Stratford is happening for a specific purpose and so investment opportunities are very real and timescales achievable.
Residential and commercial property investment opportunities in the Stratford region both existing and off plan are being created thick and fast.
The Olympic Gravy train is coming to Stratford - make sure you are on it.
