UK market may crash like the US says National Homebuyers

The UK housing market could be set to crash in a style similar to that seen in the US.

[UKPRwire, Sun Oct 21 2007] The International Monetary Fund (IMF) said that there is evidence of the UK and other European countries showing similar trends to those seen ahead of the US crash.

One of the biggest similarities is the price boom seen in the last decade, which saw prices inflate well above incomes.

"There remains the concern that the US experience might presage steep housing downturns in other countries that have also experienced a rapid rise in house prices, with associated risks for output growth," said the IMF.

It is bad news if you are looking for someone to buy your property and may cause panic among homeowners. National Homebuyers had predicted this situation in August 2007.

Operations Manager David Harber says, "I have said for many months now that the situation in the UK, although helped by the experiences in the US, will suffer similar consequences.

"As the number of buyers are limited and lending restrictions are tightened as property prices fall, each and every UK homeowner will suffer a value drop in their property.

"UK house prices, like those in the US have been overvalued for many years. As the average property price exceeds eight times salary, one can only summise that 'something bad' will happen".

Mr Harber is the Operations Manager of National Homebuyers, the UK quick house sale leaders. The company guarantees to make an offer to purchase any property in the UK, regardless of condition or location for vendors who need a 'sell my house quick' solution. The company also offers an equity release solution, Sell and Rent Back, for homeowners looking to sell their house and rent it back.

Recent indices from a number of organisations have revealed that the housing market is cooling but the IMF warned that Britain could be on the verge of a major correction in prices.

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