I agree with all points made, house price crash are an economic impossibility due to the fact we now have the olympics, Also, the government won't let it happen & property always goes up.
We also have no Sub-Prime in the UK, the government are currently kicking the banks into lending us all silly money to continue to bump prices up with as we have over the last 10 years.

All the panic from people not buying UK property and first time buyers being priced out of the market, in my opinon has only increased reantal demands.

Everyone needs somewhere to live, don't they?

What crash?

Prices fell by 0.2% in September - oh my God!!! How will we survive this apocalypse??!!

There's a lot of nonsense being drummed by by the media at the moment in the property market. I read in one broadsheet the other day that we were heading for a crash and over the page they had a story about how house prices were going to reach 11 times salaries in certain areas! So, which is it?

Of course we will see slower growth during 2008 than the last few years - but still GROWTH. Serious property investors are using the uncertainty in the market at the moment to buy bargain properties for long term gain. Don't worry about slower growth in 2008. Anyone who is into property investment for a 12 month period is in the wrong game!

I've just got my first Polish tenants and they are fantastic and there are plenty more immigrants and young professionals perfectly contented to rent. Supply & demand will favour property investors for at least the next 25 years!

Tony.

We do have sub-prime borrowing in the UK. Most lenders offer sub-prime lending facilities - we're just more stringent than they Americans. Tony.

we now see alot of uk & foreigners rather prefer borrowing funds from a mortgage company for their overseas investment instead of using their bank. why is so, or aren't the banks giving out mortgage as much as before?

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The UK has without doubt the worst external debt situation of any country in the world. Between the UK and the USA they own, but not proudly, half the the debt owed to the world be it IMF loans or money owed as outstanding debt for imports and trade deficits. But....as the UK has one fifth of the US population but almost the same external debt level you will be able to judge the imbalance. Saying that all countries have a certain level of debt but the long term aspect is what counts in a rapidly changing world.

The UK housing market will only falter if the Banks decide between them (and they do have closed meetings) to stop pouring money into the property market. How else does anyone think the market grew in the first place. You cannot borrow what someone will not lend you.

As regards the larger economy please take note of what the internal voices of the business leaders are beginning to say in articles that creep into the press and online resources. It is not positive. Forget what Brown says - he has his own agenda.

The truth is getting mortgages approved is getting very hard. That is the one thing that will stall and bring down the house. No different to the US.

Sub-prime lending has been well embedded into the market in the UK for a decade. If anyone has an old copy of the Sun dating back to 1997 you will see small box adds offering adverse mortgage deals. I knew some of the players - not nice people and walked away 7 years ago.

Also becoming more competitive in an increasingly competitive world is not the outcome if you raise running costs like the railways have. You need lower wages, lower costs, lower house prices and lower expectations to survive the oncoming route called globalization.

Perhaps reading what the press says about the UK from afar will prove a more rounded view.

Just a view.

Paul

Survival long term is all about balance.




Oh....and to put point to the comment we have just read this article in online - The Times.

HSBC predicts property slump next year - Times Online

Who would argue if the HSBC thinks it is a mess? Hardly in their interests to talk down the housing market but spells volumes about where they (The UK Banks) see their own future. They DO NOT GIVE A **** about the public. They do not care and they will take away the keys if they think it will help their bottom line. Seen it twice before. No different this time as one of the key factors in our opinion is that the UK house has been used to buy the future early retirement to the sunny shores of Costa Lot. If you equate 70% of the households interviewed wanted to sell and retire abroad they wanted their homes to be worth as much as possible. And why not. Everyone deserves a bit of sunshine.

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Property prices in the UK.

I maintain it matters not provided your portfolio is geared with less than 70% LTV and is currently cash flow positive. We enter into this business stating that we are in it for the long term, so why should the events of the last few months or the crystal ball gazing of the next few months have any impact on our activities. Spend the time looking for those BMVs and take no notice of gloom and doom merchants.

There is a lot to be said about the positive side of any crash - it creates great opportunities which we have seen and been involved with.

That is the flip side of the issue in hand.

In the US we are involved with a lot of people making hay while the sun is setting for others.

That is what the property game is all about. Keeping the eyes, and the ears open to opportunities and growth.

Paul

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How right you are!

I think the UK is going to remain a pretty stable market. Things are slowing down for sure but I just don't beleive that anything dramatic is going to happen. Supply of new housing is so limited in the UK compared to other countires