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Physcology in vested interests and the media
The human emotions behind the property bubble are greed and fear the same as the stock market. Those with a vested interest in house prices remaining high continue to inflate the housing market. The media has also had a huge influence on physcology. House prices are a popular subject and are never out of the news which is generally an unhealthy obsession. Television programmes on subjects like home staging and property development have become all too common on our screens and have made anything to do with property the in-thing.
The Economics of a boom and bust
So exactly why are we in this current mess? Why has there been a house price boom and why is it inevitable that there will be a house price crash? Economists have long ago stopped trying to predict when bubbles will burst and in particular the UK housing market bubble. What are the economic tools available to the Bank of England to control the economy and what influences changes in interest rates?
Investing abroad
It seems that everyone is now investing abroad in countries like Spain, France and Turkey to name just a few. But what is the effect of this rampant property investment and where is all the money coming from?
Government and politics
People always turn to the government for answers especially in situations like this. What can the government and politics do to deflate this house price bubble and what can they do, if anything, to prevent a house price crash? Many people wonder what Gordon Brown's overall plan is for the UK economy and why his policy seems to be to get people to borrow more and spend more. When the Chancellor becomes Prime Minister will the economy come crashing down around him?
The Law
Many people are calling for changes in the law to be made especially around planning and taxation on owning second homes. What effect will HIPS have on the housing market and should estate agents be regulated. We have already seen the FSA regulate mortgages but how far should regulation go and what is the cost of increased regulation?
Business
SIPP's are the new buzz word. However, it remains to be seen what effect the will have on the UK housing market.
What is the effect on business investment in the UK and what will happen if the UK goes into a recession?