4 reasons why the UK Property market will NOT crash

Are you worried the UK housing market is going to crash like the USA and Spain? There may be some similarities between us, but our prices will go nowhere near those levels.

And the reason we are this confident? The demand for housing far exceeds the supply.  

This year alone the government has predicted we will only build 100,000 new homes - a quarter of the required amount- before 2009. So until the UK can match this demand, the market is safe.

See the facts: why the market is far from crashing

The media may say we are on route to becoming like Spain and the USA, but the truth is we are far from it:

1.    One of the reasons why Spain is struggling is that they are still building more than they require. This is great for property investors, but not for their resale market.

We have got the opposite problem in the UK.

In 2005, 193,000 new houses were built. This may sound impressive but to make a real impact on the growth of housing prices and reduce their costs, 245,000 new homes need to be built. And we are far from reaching that goal.

2.    In 2000-2006, the population in the UK rose by 1.7 million, resulting in the need for 800,000 new households. Although 1.1 million were built in this period, these additional 300,000 new houses were insufficient. They could not account for the growth rate of the churn or 2nd home ownership.
    
3.    When people are looking to move home they surprisingly do not compare their salary to the price of the house. They actually compare their income to their annual mortgage payments.

Although, some would argue that mortgage payments - as a share of a household income - have risen from 15% (2001) to 19.6% in 2005, these figures are still well below the 34% recorded in the 1989 crash.

4.    It is natural to see more economic activity in certain areas of the country as the economy grows, but some areas struggle to match these demands. Through a combination of a lack of housing and transport, certain locations have become hot spots to accommodate this need, but cannot expand fast enough.

Reap the rewards of the market abroad

There is another possibility to consider when examining the situation in Spain and the USA - property investment.

In Spain alone, you could earn a massive income of over £500 per month by investing in their properties.

Their market is wide open.

Imagine buying properties for 40% below their asking price. It is possible. And with the right initiative you can buy lots of properties in Spain for very little.

All you need is the knowledge to make it happen.

At Property Mentor they can give you that guidance. By attending their free 2 hour workshop, they can show you how to turn properties into lucrative investments and beat the credit crunch.

You will learn how to:

• Become financially free after your first four properties
• Invest using other people’s money – with the right property your tenants can essentially pay the mortgage payments for you.
• Earn a passive income of £500-1,000 per month – this income can provide you with the equity to make your next investment at no cost to yourself.

Click here to see what you will learn from the course