UK Housing Market Has Unique Problems, Sell House Quick
Published on May 3, 2012 | Author: Harish
UK and US Housing Markets are Troubled in Different Ways, Sell My House Fast
Although the UK’s housing market problems differ from those of the US, they are still quite troublesome. The US showed a textbook reaction when its housing bubble burst, with prices negatively affected. The British housing market, on the other hand, reacted in its own unique way.
Nationwide’s analysis of housing prices compared to first-time buyers’ income levels showed a ratio of 5.4 in 2007. This dropped to 4.1 two years later. The fall came to a stop, and since that time the ratio has increased to 4.4. Back in 1995, the ratio of house cost to owner’s income was only 2.1.
Differences between the UK and the US housing practices help account for the variation. In America, a greater number of fixed rate mortgages meant that homeowners could not benefit from cuts in short term mortgage rates. Brits stood to gain from these lowered rates.
Large numbers of Americans were forced into foreclosure as they defaulted on their home loans. Foreclosed properties on the American market climbed to record highs as a result. Another key difference lies in the housing construction industry.
American builders erected too many homes. British builders, hampered by planning laws, have not been able to construct as many residences. In addition, London’s house prices have been driven upward by foreign purchasers seeking relief from troubles in the Euro-zone. The capital’s price to income ratio is 6.4, allowing only the richest to be able to afford choice housing.
Real wage price freezes, and increased joblessness and redundancies mean that desperate homeowners are pleading for someone to buy my house. A Bank of England spokesman says that the UK’s outstanding rise in population will result in house prices continuing to increase rather than move downward. He explains that this odd reaction will come about for two reasons: baby boomers will be retiring in record numbers and moving to smaller homes, and younger people will be kept out of the property market by high deposit requirements.
In Today’s Market, Owners Turn to Companies that Buy Houses
Homeowners in the UK who must sell their homes quickly feel left out in the cold by chilly housing market conditions. They wonder how they can possibly get their homes sold in this indifferent marketplace. Professional property buyers can help. A no obligation call to freephone 0800 6528 396 will put owners in touch with the expert team at Quick Cash for Properties. They will make a genuine cash offer and bring the sale to completion in just a few weeks.