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Posted on October 26th, 2006 by James Alliss.
Categories: News.
Is the UK housing market about to crash?
I know people have been saying this for years now which is why I’ve been standing on the side lines. However, lets take a look at some of the facts.
In one of my previous posts I talked about US House prices falling. Well some would say that they are falling faster than ever now. The Federal Reserve kept interest rates at 5.25% last night so home owners are hoping that this stability may help the housing situation.
Now what about the UK….?
According to Capital Economics, UK house prices have risen 205% whilst in the US the gain is just 103%. Houses are also more affordable in the US too, just 3.9 times the average salary to buy a house. In the UK a home buyer needs about 5.6 times the average wage!
Economists feel that the UK increasingly looks as if it is delaying a housing crash!
Inflation is picking up and interest rates are in an upward trend. As I’ve previously mentioned in another post, the Bank of England is almost certain to raise UK interest rates to 5% in November.
I’ll keep you posted with any information I get on this situation.
James Alliss.
Tax Free Investing
Become a Multi-Millionaire
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