A Hard sell: Britain’s Broken Housing Market
Experts have predicted that an impending property crash could see house prices fall to as low as £70,000 in some areas. Not only that but, taking a historical view, experts warn that it could take as long as 8 years to recover from.
The most recent crash in 2007 saw a seven year climb for the average UK house price before it reached its previous peak of £190,000.
Should this crash take place millions of homeowners could see the value of their homes drop dramatically, with Londoners in particular facing drops of £85,592.
However, Londoners can also take comfort in the fact that their property price would return to normality the fastest, whilst those in Wales and the North West could face a much slower return to normal. In these areas prices have only just recovered from the 2007 crash – another could be devastating.
Equally for homeowners based in the North East and Northern Ireland, markets have yet to return to pre-crash prices still.
Another worry is that the typical deposit for buyers has doubled nationally. In the capital, it has grown to nearly £100,000. With this in mind it seems logical that most homeowners are opting to stay put rather than climb the property ladder. This is equally problematic for first time buyers and the housing market in general. For those who are set on selling, taking cuts to asking prices has become the only option.
There’s no cause to panic just yet however as experts are quick to insist that the housing market may well hold steady for the rest of the year.