Dear Readers
This will be my last post before christmas and I will give a few final thoughts of what I think will happen to the UK property market in 2008.
Firstly, it seems that the Bank of England are going to 'agressively' cut interest rates next year to save the economy from slipping into a recession and also stop the dramatic slow down of the property market. This will come as good news to property investors and homeowners as the costs of borrowing will gradually fall next year as interest rates are cut.
As regards to the expected performance of the property market as a whole next year, I certainly feel that there will be little or no growth on average and some areas such as Greater London may actually see falls in property prices as the availability of credit dries up and hence demand for property falls. The only area where prices could potentially still see good price rises is the Scottish property market which is expected to see an average property price growth of over 7% in the next 2 years.
I feel that 2008 is a very uncertain year for the economy and the UK property market and making an accurate prediction at this stage is pretty much impossible. However, with interest rates being cut aggressively next year, I would hope that this will slowly stabilise the economy and the property market with credit becoming slowly cheaper once again and demand slowly coming back gradually amongst property buyers in 2008.
This certainly has been a huge year for the UK and global economy and the UK property market and hopefully 2008 will see a more positive year all around.
Finally, I would just like to wish all of our readers and customers a very happy christmas and a prosperous 2008!
Merry Christmas!
Grant Delmege
Zone 4 Property
http://www.zone4property.co.uk
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