Five Reasons Why We Will Have To Stay With The Boom And Bust Cycle In The UK Property Market

So once again the countrys’ economy has gone bust and we are in the grips of a recession. This despite the much vocalised protestations of the preceding Labour government that the days of boom and bust were over. But don’t be in too much of a rush to pin the whole thing on devious , self-serving politicians. The current nadir in the economic cycle was very closely linked to the property ownership market and it’s obvious that when We Buy Homes that we cannot afford to pay for in the longer term then something has just got to give.

I am possibly in a more fortunate position than some of the country’s population in that at present I don’t need to Sell My House to pay the bills or because I am struggling to keep up with the mortgage. Just as well really, because If I were to Sell My House then I guess that it would go for some eighteen to twenty four percent under what it would have sold for at the peak of a few years ago. Obviously when We Buy Homes it’s not always going to be a purely investment based transaction but no person likes to think of a thirty percent drop in value of something is invariably their main and greatest investment.

But still I believe that the cycle of home price gains and falls is inextricably linked to the economy in general. They are both completely reliant on one another and here are five reasons why the cycle of boom and bust must go on .

1. Our adversarial political structure means that every few years there must be changes to our administrative and governmental systems . This cannot bring anything other than periods where focus changes as far as the economy goes and this simply must affect the housing market either for the negative or the positive .
2. The lending institutions may be a bit reluctant to dole out money for mortgages currently but we should remember that they make their business out of lending money, invariably on property, and so new and novel products are bound to emerge which will allow people to borrow money against property despite their personal financial situation. They are working on this all the time, trust me.
3. Property ownership in general is seen as a “Good Thing” throughout the country. When We Buy Houses the idea is that we are buying a stake in the country’s assets and that we have our own tiny castles. A for instance is when scanning through the personal dating ads on the local paper or on the web a very desirable acronym is OHAC (Own House And Car). Thus there is an underlying desire to own houses that is robustly fuelling property price increases even to the point where prices are unsustainable and we see a crash such as we have seen over the past couple of years.
4. There are no laws in place to regulate the property market. There may be rules and regulations supervising the financing of mortgages these days but the housing market itself is as free as a bird and a bird that has a marked tendency to soar and swoop!
5. And to cap it all population numbers are expanding . This can only provide pressure on the whole market and government initiatives to provide so called affordable housing falls desparately short of the demands of the population as a whole. Again this means an upward pressure on property prices once more raising the possibility that house prices may become unsustainably high in the good times.

My premise is therefore when We Buy Houses don’t think that it’s all going to be plain sailing. Prepare for the bad times as well as the good. Boom and bust has forever been with us and I bet that it’s here to stay despite what the politicians say!