Government Policies and House Prices

Readers Question: Do government policies make any difference to house prices?
See: factors that affect house prices

Governments could try to influence house prices, but, they have generally been unsuccessful. Also the MPC set interest rates. The government no longer controls interest rates but interest rates could have an impact on house prices
To moderate house price rises [...]

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[Source: Finance Blog]

Factors that Affect House Prices

Readers Question: I would like to know that what are the factors that effect the price of houses in UK and does government policies make any difference to it?
The most important factors for influencing house prices in the UK
Market sentiment. If people see house prices rising and they expect prices to continue rising, more people [...]

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[Source: Finance Blog]

Why Credit Crunch in the UK?

Readers Question: I still dont understand why the credit crunch in US caused a credit crunch in UK? is it because banks in UK depend on US banks to borrow money?
See: Causes of Credit Crunch
Many UK Banks bought bundles of the bad mortgage debt from US mortgage companies (either directly or indirectly). Therefore, when the [...]

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[Source: Finance Blog]

Time Taken to Sell A House

The credit crunch has significantly increased the time to sell a house. The lack of first time buyers in the market (with no onward house to sell) has slowed up the market considerably.
Even just looking around your local streets shows a real dearth of ’sold signs’. I know on my street in Oxford there are [...]

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[Source: Finance Blog]

Problem With Falling House Prices

House prices continue to fall amidst sluggish property sales. The dynamics of the market mean that falling house prices create a powerful negative momentum for both the economy and housing market.
Lenders don’t want to lend With falling house prices.
When prices are rising, mortgage loans of 95% value make sense. However, when prices are falling they [...]

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[Source: Finance Blog]

Affordability of Housing in UK

An interesting statistic shows that last year’s house price falls have made average house prices more affordable.
At the peak of the boom in July 2008, the house price to earnings ratio reached a record of 5.86. Now, the ratio of house price to earnings has fallen to 4.56 (according to statistics by HBOS). This is [...]

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[Source: Finance Blog]