Suppose you buy a car. It is quiet certain that after 5 years its price will be reduced to half of the actual price. But as far as real estate is concerned its price rises with passage of time. It’s not so that the bricks or cement prices rises. Actually, the land value is increased with time. This article deals with the changing housing price in UK.

The market tend to show changes between extremes of booms an busts  All the survey gives the idea that there will be a downfall in the UK housing markets in the up coming 3 years. The UK real estate market is very volatile. It is prone to change.

The last 40 years has seen a boom in housing market at least in UK.

The mortgage laws are bound to see an increase in strictness. Now it would not be so easy to get mortgage in UK.

There has been large number for foreclosure cases. It increased to 34000 in 2006 and much more in the year 2007. In 2008 it is increasing even more. This has affected various mortgage banks badly.  This will lead to even tighter rules and regulations for mortgage.

Though the house price increased in 2006 but the affordability remains the same. This is due to increase in income and low interest mortgagees.

The housing prices in London have seen a peak during this time. Same is the case with south west part. Others are following the path followed by London.  Similarly south of UK has risen to a greater extent in the past few years, much more than other parts.

The UK housing market is bound to decline by 15% in the next two years. London is due to reduce by 25% despite of 2012 Olympics. The UK interest rate has been cut down in 2008. The question arises what to do, for different partners in this field.

Home owners: if you are in mood of selling your house then you should sell it as soon as possible. The market price is falling down. There will be a fall in coming years.

Cash: you should invest in fixed interest schemes interest bank. Avoid investing in mortgage banks like northern rock.

Invest in government bonds.
Invest in national saving funds. This will be very impotent for highly tax payers.
It is possible for stock market crash. This will be a boom for buyers.
India and Russia looks like emerging and are investor paradise.
However you can contact your real estate agents and lawyers for further information.