Property Hawk the landlord's homepage since 2006
Free Tenancy Agreement FREE tenancy agreement
Free Landlord Software FREE landlord software
Home | Property Manager | Free ASTs | Landlord Forms | Mortgages | Insurance | Inventory | Magazine | Landlords Bible | Directory | Forum | Training | News / Blog |

Monday, June 16, 2008

House price future dependant on supply and demand


The classic supply and demand equation is something that will potentially result in shorter and less drastic house price crash than the one many doom-mongers are predicting.

The reality of the UK housing market is that they are building far too few homes to meet government targets. Heres a recent Times article on the subject.

Long term house price inflation is very much dependent on the two key factors of supply and demand.

Supply - how many properties will the government actually get built ( at the moment not enough)

Demand - how many people will be living in the UK ( at the moment the government don't have a clue about the true levels of immigration, will the population continue to balloon through immigration, both illegal and legal or will as the Polish workers are starting to do - will immigration levels start to balance out because many migrants prefer it 'back home'. Or will there be stricter restrictions on immigration that will limit UK population growth.)

No comments: