Economy Looking better for House Sellers
In some parts of the country in particular London, house prices have started to rise at such a rate that many believe that if this were to continue it is completely unsustainable and prices may crash again. The fact of the matter is that supply and demand will always dictate house prices and in highly populated areas such as our cities where there are more buyer than sellers, they are simply running out of space. Many prospective buyers are even sceptical that they should enter the property ladder now and our weighing up whether or not to wait for the next housing bubble to crash.
What does the Government say about another Housing Bubble
David Cameron has dismissed concerns about a housing bubble and stated that housing prices are still substantially lower than they were in 2007 and there is no evidence that the real estate market would reach the level of the crash for another 5-6 years, which actually doesn’t seem that far away. Regardless of government reassurance, experts and observers alike are skeptical and remind these government schemes that you cannot deal with the rising prices unless there is an effective method for building new homes, particularly in areas that are experiencing high demand.
The U.K. has one of the best-projected economic growths of 2014 but house sellers want to know that the numbers are not a result of property inflation but of a sustainably growing economy based on industry, technology, and innovation. Unsustainable price surges would put the economic recovery back to square one and there would be more need for companies who can buy any house. Therefore, while it is important to help buyers climb the property ladder, it’s also important that the property market remains balanced so that first time buyers are not blind sided by an increasingly sensitive bubble.