Property Network says consumers fear another housing bubble

Property Network says consumers fear another housing bubble

9:15 AM, 1st October 2013, About 11 years ago 15

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In light of the recent announcement by the UK Government that Help to Buy has been brought forward, a survey has been carried out to gauge how the electorate feels about the state of the property market.

The survey was taken by the users of the social media-based property portal, Property Network, and paints a picture of dread in the property market.

According to the survey, over 50% of people fear another housing bubble while over 73% of people are worried that interest rates are going to rise.

Ben Hood, one of the people surveyed by Property Network, said, “I have just about enough money to buy right now but I want to wait a couple of years. If interest rates go up a couple of per cent then I’d struggle to pay my mortgage. I don’t trust this government to think about long term effects of their policies.”

The early introduction of Help to Buy could be timely as over 64% of people believe it’s harder to save for a deposit now than 12 months ago.

Many experts suggest the Help to Buy scheme could have dire consequences on the economy and UK property market so it remains to be seen as to whether this will lighten the general mood of UK residents. The next survey from Property Network will investigate just that. Property Network


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Comments

22:41 PM, 7th October 2013, About 11 years ago

Reply to the comment left by "Romain " at "01/10/2013 - 09:54":

This is not a bubble but certainly the making of a bubble. These are strange times.....firstly interest rates held artificially and damagingly low for far too long, turmoil in Europe seeing foreigners plough money out of euro based investments to London property...and now the government inventing schemes to allow people to participate in a property market which without assistance would have been out of their reach. That is hardly the dynamics of a true functioning market. After three tyears in Switzerland...and now only just returned to the UK...I am looking to buy a residential property and a buy to let....but I do so having accepted that the cost of finance will probably increase faster and higher than most people expect. The BoE could not have had a better track record in calling the market wrong at all turns....to suddenly believe what they say about rates staying low for another three years would be naïve indeed.

Neil Patterson

23:31 PM, 7th October 2013, About 11 years ago

The BofE is switching from a 100% focus on keeping medium term inflation down to 2% to targeting a recovery of 2% pa increase in GDP

This would make sense to me as ever since 2007 I have been arguing that inflation is being caused by external forces that you can't control domestically and that you should concentrate on domestic demand lead inflation which has been very low for a long time.

As ever all things could change tomorrow, but I see no evidence yet that in the medium term there will be sufficient domestic recovery to warrant an increase in Base rate.

The cost of recapitalising the banks and end cost to borrowers because of this is in effect keeping interest rates artificially high and stalling economic recovery.

Japan is a somber example of how long we could be in the same situation despite 0.5% base rate and 375billion in quantatative easing.

Jonathan Clarke

2:49 AM, 8th October 2013, About 11 years ago

Will there be a bubble is anybodies guess.
Not a day goes by when a large supposedly eminent body or institution announces that they are ` adjusting their forecast`. This means in essence they got it wrong before when they made their previous, often far too confident and perhaps arrogant forecast. Nobody knows, we all just guess

I accept that governments have a duty to sometimes perhaps settle nerves and provide... `forward guidance` and make robust assertive positive statements . Team captains after all have a duty to bond their team together and motivate them to win . We look to our governments to do the same.
But when all said and done it is just a guess

As investors we should adjust daily. When I invest I make an educated guess as to how it will all pan out but at the end of the day.......
Life ( I`m guessing ) is just guesswork............

``In this world nothing can be said to be certain, except death and taxes``
Benjamin Franklin

Romain Garcin

8:07 AM, 8th October 2013, About 11 years ago

My guess as to why 'consumers' fear another housing bubble is that it is because of this media bubble about the risk of a housing bubble.

You start by reading about signs of life in the market. That probably makes you feel rather positive.
Then you start reading articles about a 'boom' and the risk of a new bubble. You start to worry.
After you had time to seriously worry, you're asked whether you fear a new bubble: Well, you do now after all these worrying articles.
Eventually you read about that survey that most fear a new bubble... And you start to panic.

😉

David Carlisle

8:15 AM, 8th October 2013, About 11 years ago

Reply to the comment left by "Romain " at "08/10/2013 - 08:07":

New article: People fear survey suggesting people fear housing bubble.

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