brissybee

I gather UK property prices are in a slump right now.

Does anyone know what the current "expert" thoughts are regarding when UK property prices might pick up?

Brigette

NOt sure, but my sister who plans to return home a year after me, constantly looks at this site when checking housing prices

http://www.primelocation.com/

dunroving

It depends very much what part of the country you're looking at. London, for example, is not in a slump and everything I've read indicates confidence that house prices in the South will continue to go up.

Elsewhere, and in general, most of the articles I've read don't seem to predict any substantial rise in prices over the next 5 years.

It's interesting, however, to read articles where they profile the opinions of a variety of "experts" - their predictions vary between a continued decline to a small-to-medium increase over the next few years.

My advice to anyone returning and wanting to buy is that it is a buyers' market, there's no rush, and that therefore you should be sure before you buy (because these days, moving house can be expensive when you consider the costs of selling/buying in the context of no likely profit on selling).

chris955

You have to love the predictions of 'experts', there is always one to support your own view

RJB123

Far too many of the 'experts' out there have a vested interest in people believing that property prices are increasing. If prices are falling then prosective buyers will hold off until the market bottoms out which is bad for most of the 'experts' businesses. I am personally watching the market carefully but feel under no pressure to buy yet as I do not believe that prices will increase significantly in the next couple of years as the money just isn't out there to stimulate growth.

Panhandle

When I returned to the UK (London) late March I started looking for a 2 bed flat to buy, there was one that I looked at, it seemed the crafty owner turned a small 1 bed flat in to a 2 bed flat on the first floor of a house. So it was even smaller although the estate agents pics made it look large etc.
The kitchen was brand new though about the area size of 3 telephone boxes all in all it was a shoe box with plenty of partitioned walls all for the princely of £265'000

2.5 months later the price went down too £245'000, now is down too £239'995, at the time when I viewed the property the East European agent insist I make an offer, didnt matter how low he just wanted me to make an offer!

Lesson: Be on your guard, you will come across plenty of shysters out there, £250'000 seems to be the value of most 2 bedroom flats around my area, and for that you will get very little etc.
Its very frustrating as I want to buy but like many I would like prices to come down as I dont want to over pay, property prices should not be so high, I wonder when interest rates do start to climb what real effect this will have on property prices as so far nothing seem to be stopping them!

dunroving

In case people don't know, property Web sites like Rightmove also show sale prices. Asking prices aren't the best guide, as in different areas people are asking more than what they expect to get, by varying amounts (and in some areas of Scotland there is a mix of "fixed" price and "offers over" prices, which is confusing!)

In Rightmove, the link for house sale prices is towards the top right of the page - look for the link that says "House prices".

Bevm

Also, if you use Firefox as a browser, you can get an ap called Property Bee which reveals any changes in price or details over time. Can be very interesting!

I think in most places buying a property as an investment is past. There are two really good reasons to buy. One is if the costs of the mortgage, running the place etc will be about the same as renting. The other is if you have money in savings and would rather have it in something solid that can't be slid from under you by inflation, yet more banking chaos etc.

Oh, and a third -- simply being able to make the place as you want it, whenever. Allowing for planning regulations, that is.

Bev

Pom_Chch

I guess it's not just the house prices that are the problem, it's being able to put down a sizeable deposit as well. First time buyers (like me!) have to come up with shocking amounts of money to put down as a deposit and even then this would be for a 1 bed flat in an OK area. Oh well, I guess I'll get my one bed flat perhaps by 2020!

sallysimmons

I agree with this. We've just found a house we both love and yet we're being very cautious and really thinking every aspect of it through. In the past we were much quicker to make a decision.

Given that the UK property bubble has yet to burst, I'm certainly going into it assuming that either the house will lose value or at very best stay around the same. I'm looking for a home not a financial investment.

Cumbrian Lass

yeah i totally agree Sally !
I think houses in certain area's won't go down as much as some in other area's. I just wish the lake district would go down,i think they are way over priced for what you get,but there again its the area your buying too.

cheeky_monkey

i'm not sure there is an actual bubble to burst?..its all about supply and demand..lots of potential sellers will hold of on selling their property if house prices are stagnant..so the number of properties on the market doesn't increase..a lot of buyers will also hold of from buying hoping that prices will fall..so you end up in a vicious circle of not much happening.

At some point but not in the near future i would expect prices to rise slowly then things could suddenly take off again..because buyers suddenly feel prices wont fall and rush to purchase before prices start to increase rapidly again thus pushing prices up and then sellers suddenly come back to the market too.

Also the UK has a rising population and lots more single people looking for homes..so the housing stock is/will be in short supply especially in the short short term.

If the bubble didn't burst in 2008-10 then that's why i doubt there is one to burst..remember house prices peaked in 2006/7 and have fallen back say 10% since then..so in real terms houses are maybe 15-17% lower than they were 5/6 years ago.

sallysimmons

Let's hope you're right - if you are, I'll be pleasantly surprised sometime down the road when my house is worth more than I thought. But I always like to look on the bleak side when making big decisions, so that I'm OK whatever happens

Sally Redux

I didn't know that. Thanks for the tip!

feelbritish

I agree with Cheeky Monkey it is a slump and eventually people will get tired of not doing anything and will want to own start buying property again. If the interest rates do not start moving up anytime soon, that will also lead investors to buy property so that they get a return on their money. I also agree with Sally, if you are buying your long term or forever home, you have a lot more time to decide and be sure it is what you want. I cannot see houses taking off like they did in 2005/6. In the long run, owning your own property usually gives you the best investment over your life span!