As commentators continue to be taken aback by the rise
and rise of the UK housing market, fears are growing
that during the next 12 months there will be an
inevitable "correction".
The
Halifax
bank reported that prices rose by 1% in March, taking
the annual rate of house price inflation to about 11%.
The average cost of a house is now £194k
The current
price levels are simply not sustainable according to
economists. Whilst there is unlikely to be a crash as
seen in the eighties and early nineties, the scale of
affordability linked to wages and inflationary elements
suggests that a severe correction may be heading our way
in 2008.
This year is
a big one for the housing market with the introduction
of
Home
information packs which are designed to help the
property sale process. However the packs have their
critics and there is also a considerable worry over the
way in which the public will react to the new
legislation.
The market has seen a sudden (but predictable) surge in
new instructions as people try to "beat" the
pack regulations
deadline.
The next few months will prove to be a very interesting
time for the market and the UK economy.
