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UK House Prices: will there be a crash?

One issue that has been dominating news headlines in recent months (and also concerning many home-owners) has been the future of the UK housing market. Many people have invested in housing stock over the last decade or so, encouraged by house prices that have been on an upward curve.

With the UK enjoying a period of economic prosperity, thoughts on housing as an investment have generally been very positive. This upward trend has, however, worried some who believe that prices have risen too far and too fast. Such worries have prompted the Bank of England to consistently increase interest rates over the past year. Many home-owners are now questioning whether this will lead to a "crash" (a rapid decline) in house prices.

What do the professionals think?

Opinions among economists and estate agents are mixed. A recent report by the Halifax Building Society suggests that UK house prices are already falling in value but most economists feel that the price decrease is likely to be relatively slow and steady. Nevertheless, those with an interest in the UK housing market would be wise to keep an eye on house prices during the next few months. To help you with this, check out our analysis of the latest UK house price surveys.

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Listed below is some further suggested reading:

Latest house price information

Are UK house prices closer to crashing? - A useful analysis and overview from the BBC.

Hometrack - the UK property website allows homeowners to look at price trends both nationally and regionally.

San Francisco Bay Area Housing - for those of you that are interested in US house prices, this article gives an interesting insight into the San Francisco Bay Area housing crash.

Estates Forum - A community site offering independent advice to home buyers .

Will house prices crash? - fears are raised that househunters are losing confidence in the UK housing market.