The positive side of the industry press has reported on the first half of the sentence; which shows that the UK is still a nation of aspirant homeowners. Yet, when I read the later part of the report, it really caught my attention because it clearly shows that homes which are for sale in the UK are not affordable to a lot of people.

According to the most recent info from Eurostat from about June of last year, UK home ownership stands at 70%. On the other hand, ever since 2008, there have been 40,000 home in the UK which have been repossessed and quite a few other homeowners are selling their homes to prevent foreclosure. There is no way to appraise how recent the data the Eurostat figure was founded on because it was simply a standard overlook of European social benchmarks.

The Nationwide indices of house prices and affordability within the last 30 years show a trend: that UK house prices are heading for a fall (correction) when normal home loan repayments become over 90% of the normal first-time buyer’s income. When the index goes over 110% the correction begins within 2 quarters. During corrections, prices drop until finally the standard home finance loan repayments return down to less than half of average incomes.

In today’s correction — you can quickly realise why current has been utilised rather than most current — the cost index moved up to the point where standard mortgage loan payments were 136.2% of average first time buyers‘ wages. This high stage was reached in the fourth quarter of 2007, and UK home rates experienced their first drop, the first of several in the second quarter of 2008.

Approximately then and the 2nd quarter of 2009 average home loan payments dropped to 93.1%, but then prices began escalating once again. According to Nationwide’s newest information, average mortgage payments were 95.1% in the last quarter of 2009, a small decrease from the 95.9% noticed in Q3.

Because of this, the phrase present has been utilized to name a correction that lots of people assume wrapped up in the other half of last year. Because going by historical data this correction really should have made prices lower much further than it made — especially with the economic atmosphere and work situation the way it had been.The distinction being that this time there seemed to be a global build up that forced governments into never-before-seen-numbers of economic and housing sector incitement.

That stimulus is coming to an end, with the new coalition likely to carry out tough cuts in the forth coming months. There was a significant rate of mortgage approval a year ago but has been on the slide this year and several indices on home prices in the UK have noted price falls. It is strongly suggested to those people who are planning to buy UK houses to wait for a number of more months as we could be having the second leg of this correction.

Now that you know the challenges you face in the current property market, visit the our website and read our expert guide on how to sell your house quick. Gavin Brazg is editor of www.TheAdvisory.co.uk – UK’s largest free resource of free expert advice for UK House sellers.