Property bounce back
The recent slump in house prices has caused a reduction in new home being built to a record low of 110,000 across the country planned for 2008. In the medium term this will cause more demand on existing housing leading to a bounce back in property prices.
Buyers with a imperative to move, first time buyers plus property professionals will all raise the demand for housing in the UK in the year to come.
With supply not meeeting demand it is only a matter of time untill prices start growing strongly again in the UK.
The average property price in the UK is £210,00 down just £1,740 on the previous month. Spain, the fourth largest economy in the EU, has an even greater problem the prospective construction of holiday homes has led supply to exceed demand and the property market fell by 7.1% during last month alone! Spanish inerest rates have risen by 11.1% in the last year.