House price data from past used to predict future
The UK housing market has been extremely turbulent due to the recession recently. Now, analysts are using trends and data from the past few decades in assessing what is going to happen to house prices in the long-term future.
One of the underlying features of the property market recently has been the lack of equity that new buyers are experiencing once they buy their home – dividing them from those who would have experienced significant gains in the value of the property they bought.
New statistics are revealing that on the most part, house prices in the residential property market have more than doubled over the past ten years – and this even takes into account the troubles which have been seen because of the recession. Over the long term, the property market is set to continue to climb as it has done in past decades, and this can be mostly regarded as good news for sellers and for the property market as a whole.
Of course, the boost which is going to be seen in the next decade looks set to be far more modest that the rises which were seen during the housing boom. Between now and 2020, it is anticipated that house prices will be two-fifths higher than the current rates.
Other interesting facts include how more flats are being built than ever before, in contrast to the levels of detached properties which is declining rather substantially. This trend is set to continue.
Despite the difficulties that some consumers are experiencing at the moment, it has also been believed that repossessions have become less common. In contrast with levels nearly 20 years ago in 1991, there has been a reduction in repossessions by 39% at worst –standing at 46,000 in total. This is comparable with over 75,000 repossessions at the beginning of the 1990s.