According to Rightmove, house prices in England (with the exception of
Highly Desireable Properties being purchased by wealthy foreigners, I
guess) have been down for the last six months.
This is a reflection of the uncertainity regarding employment, job creation
(not as much as is necessary) and a perception that house prices were overdone
The Housing market - in a down turn - used to be a 7-year cycle in the U.K.,
from what I remember.
Hence, when house prices started to fall in 1989, they did not recover until 1996.
A few weeks ago the Government announced that they would bring back the
Right to Buy, as Baroness Thatcher did in the '80s, with generous discounts
related to years of tenancy. The re-introduction of such a scheme I believe
would boost the housing market, with people on low-incomes being enabled
to buy their Council house or high-rise flat. Ownership brings pride, improves
peoples outlook, and creates wealth in the long-term as people can borrow
against the collateral and build businesses. I hope the government can re-introduce
this scheme very soon - it would help a great deal.