August 17, 2007
Experts say property strong
Despite the drop in share prices around the world, property experts believe that the housing market in the UK will remain steady. Although the stock market crisis is said to have been triggered because of the problems in the USA housing market, this should have no effect on property prices here.
However the problem in the USA is due to many homeowners not being able to afford their mortgage payments and therefore they are defaulting, this will have effect on mortgage rates in the UK. But instead of the banks raising interest rates, they may look at the situation and feel that the current level is ok for now, or in fact a drop may be in order to prevent the same happening in here.
The good thing about the property market is the buy to let sector, people are investing into new properties and instead of using it as a residence, they immediately put in onto the rental market, this covers the cost of the mortgage and other expenses. So interest rates have little effect on this sector.
Source [ic Wales]
Add to Bookmarks:
Related stories to Experts say property strong
Next: Its property but not as we know it »
Visited 70 times, 1 so far today
Comments
Leave a Reply