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It is now being tossed about all over, the UK economy is in recession and that property in the UK is falling in value and it is a lottery to know as to when these figures will continue to tumble. Reading alot of other blogs and media editorials on the internet it is generally accepted that prices will fall on average 30%, though it is becoming more and more frequent that finacial experts are predicting that this fall could extend to 55%. They fear that the extent of the UK government debt along with the bleak economic outlook will have a negative effect (as it is doing at present) on the property market.

Prices were allowed to spiral upwards at too faster rate on the back of nothing, but a ‘feel good factor’ under the Labour government. People were spending credit as opposed to their earnings. Each year increasing their mortgages to accommodate their new upgrades on cars, multiple annual family holidays and plasma televisions in every room. These kind of people added to the national debt and now find themselves in negative equity (rightly so?) and are now starting to loose their treasured possessions (which they never really owned or worked for?) and the worst case scenario is many situations, repossession of their property.

Yes, many people will feel sorry for the ones losing their homes, but just how many of these people are actually in this situation for genuine reasons? How many of them simply spent, spent, spent with absolutely no regard for future finacial situations?

People tag them as vultures, but these people that are now buying up cheap property from auctions and taking advantage of giveaway prices of cars etc because other people are trying to stay afloat should be looked up to and thanked for having been safer with their spending. Families that studied their monthly bills, never were tempted to take advantage of their limitless credit spending, that may even have rented foreseeing this property price crash, are the ones that will profit.

I think that over the next 2-3 years house prices will adjust to or maybe even below the inflation band. At present it will be those with cash that are king and those that borrowed too much that will be poor. This unfortunately is a cycle that has occured many times before and it’s a cycle that will continue in years to come.