A House Prices Crash in the UK is Unlikely But Some Areas Will See a Correction

I’m just back from a short holiday to see there is more gloom in financial markets. I also see that the news today is that the S&P/Case-Shiller US National Home Price Index fell 3.2 per cent last quarter from the same period in 2006, its sharpest decline since the index was created in 1987. This was an acceleration from the 1.6 per cent in the first quarter. As this data was collected before the end of July - before the sub-prime lending crisis really hit in August – the falls can only be expected to become more rapid over the near term.
Of course the key to property investment is to buy well and pick locations with care.
I don’t think that house prices will collapse in the UK, though some areas, notably parts of Ulster where I spent the weekend, are in my opinion already too high and due a correction.
In north Antrim I saw two bed terraces on at over £200K. With rental yields already very low according to my friends over there, I can only see house prices falling back a bit in Ulster. There has been some regeneration it’s true in Ulster, but I think the leap of 50 per cent in house prices in Ulster over the last 18 months or so, is more than enough.
To find out more about buy to let mortgages and property investment ask me. I’m David Lawrenson from property investment consultancy Letting Focus. I’m the author of “Successful Property Letting – How to Make Money in Buy to Let” the UK’s top selling buy to let book.
I’m a speaker, I contribute to newspapers and a host of property websites, write a property investment blog and property investment
You can read more of my property expert insights and details of my networking, advice, property and buy to let seminar programme and property consulting at my website http://www.lettingfocus.com/
My next London seminar is on 10th September and I am also speaking at the property investors show in London on 22nd September. I will also be a panellist at a debate in the afternoon at the show. Details here: http://www.propertyinvestor.co.uk/london/seminar.asp
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Copyright: David Lawrenson 2007. This blog is updated at least twice a week
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