Put an End to Boom or Bust in the Property Market

With the current state of the property market in the UK its clear that these are not good times at all if you are looking to buy or sell your home. House prices falling meaning if you are selling your house you aren’t getting as good a return on your investment than say 12 months ago. In the worst cases the plummeting prices can force some home owners into negative equity. This means they owe more money that their house is actually worth. This is forcing more and more people into renting or extending their rental agreement until they can buy a house. This is of course good news for the rental market. People are understandably worried about the state of the industry at the moment it’s just a matter if they can hang on in there until things improve.

Let look at why the boom or bust culture happens within this industry and how it can be improved upon. A Politian recently commented on that the bank of England should take into account house prices when calculating inflation as they currently don’t.
When the bank of England calculates inflation they use the customer prices index (CPI) which does not include house prices. This politician when on to say that it would be better if the retail price index (RPI) was used which does include house prices.

This was welcomed by some sectors, however whether the monetary policy committee stand up and takes this into consideration we will have to wait and see. The rental property market is seeing great gains and if you are looking for property to rent in Liverpool I would try here or even if you need houses to rent in Bristol. There are many properties available.

I think that we do indeed need to look into how we can avoid similar things happening in the future. When the market recovers and it will, there would be no point in going back to the boom or bust method as the end result will just be the same in a few years. I do think this is a global problem and if country’s can come together a discuss this and develop a solution then the future will bring more stable house prices. The first thing we need to do is get the confidence back into the banks to borrow money from each other which will help people get a mortgage more easily. This will also help boost the construction industry which seems to be barring the brunt of this downturn those who don’t learn from history are doomed to repeat it.

Author

Jack Mack

Jack's Website: Poker Rules