Sunday, September 6, 2009
Pining for the good old days
Start: After a dire 2008, which saw price falls of 16pc, the UK housing market has been one of the more surprising sources of good news on the economic front in the past few months ... Finish: Clearly the price rises over the past month are not the beginning of a return to the booming housing market, which began to unravel with the global downturn. Not until unemployment stabilises are larger increases likely to occur. The high levels of household debt relative to income, prevalent in the UK, are unlikely to foster a booming housing market. Nationwide expects to see larger increases in three to five years. Instead we are in for a period of stabilisation, with some volatility along the way. Following 16pc falls in prices in 2008 alone, that is reason enough for some cheer.