OECD Warn About Sustainability Of UK Property Market
The Organisation for Economic Cooperation and Development (OECD) has warned about the sustainability of the UK property market as residential property prices gain more upward momentum across the UK, and continue surging phenomenally in London, prompting growing fear of another property market bubble, as the UK economy continues to recover from the financial crisis in 2008.
A property market bubble occurs when property prices become so over inflated that they become unsustainable and the market collapses
The Confederation of British Industry (CBI) also aired concern saying that they are on high alert about the property market in London and the South East of England as house prices surge.
The Bank of England are said to be monitoring the situation, however BOE policy maker, Ben Broadbent reckons there’s no need for alarm over the UK property market as they have already curtailed incentives for home loans through the Funding for Lending Scheme.
Rising property prices are a good thing, they are a good indicator of the overall health of a nation’s economy, and the current government are confident that prices will continue to rise, hence the introduction of financial incentives such as the Help To Buy scheme, encouraging property buyers with loans or guaranteed underwritten mortgages, allowing them to gain a stake in the UK property market.
Rising property prices are all part of the property cycle, prices rise and fall periodically. Right now we are in a rising market, that’s why RIGHT NOW DEFINITELY IS THE TIME TO INVEST IN PROPERTY as property prices are going to continue to rise, allowing property investors to make decent profits on new and refurbished properties.
Even the UK Government expects UK property prices to continue rising as the Housing Minister, Kris Hopkins made an attempt on television to ease public concern over fear of another bubble in the property market , saying that he expects property prices to rise for the next four years as the UK is nowhere near peak property prices and the housing boom may continue for another four years.
Mr Hopkins said on BBC television “We’re nowhere near peak at the moment on house prices and we’re not expected to go past that peak price from back in 2008 until around 2018. Price inflation in London is an issue and is specific to London; it is about 9.1 percent, the rest of the country is 5.8 percent, so across the country the property price average is still below peak.”
What’s Stopping You From Buying Property?
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