Why house prices will go UP over the next 5 years

Many uninformed people may feel that the fall in UK house prices will make it easier to get on the housing ladder but in reality it is more difficult now than ever before. The reason is simple: banks do not want to secure their assets against property at the moment and therefore, in a nutshell, do not want to lend mortgages. Today, even if you had a big deposit, perfect credit and no debt you'd still pay more for your mortgage than someone with no deposit whatsoever would've done 9 months ago. Now that is absolutely scandalous!
The real killer though is the fact that no-one whatsoever is mentioning amidst all the credit crunch hype. This fact turns everything you may read in the papers on its head. This fact is that in July 2007, the government announced that 5 million new homes were required in the UK in order to meet housing demand. The drivers behind this demand were: more immigrants, more adults, more pensioners and more single-person households. Fact: housing demand is there. The other side of the coin is that since the Credit Crunch has kicked in most builders have slowed down production meaning that targets, which were already being missed, are now miles off.
Fact: housing supply is not there. Now correct me if I'm wrong, but the Credit Crunch hasn't stopped immigration. It hasn't stopped pensioners wanting to maintain their own independence in their old age. It certainly hasn't stopped divorces - if anything, it has contributed to a few. Therefore demand has continued to steam ahead whilst supply has been stopped at source. This situation will build and build like a boiling pot until such time as mortgage criteria is eased - which must inevitably happen. At this point I strongly predict that house prices will rise faster than ever before. The winners will be the investors who can move quickly, not the pub "know-it-alls" who pass comment after reading out of date hyped-up newspaper nonsense. The money-men who will have amassed huge portfolios when property was under priced will triumph. Should this occur, it is likely that the owner occupation rate in the UK will drop from 70% to nearer 60% as is the case in mainland Europe. A lot of people will make a lot of money but as a First Time Buyer with the dream of owning your own home it will be more difficult than ever to get on the ladder. It is sad to think that home ownership, the vehicle behind the economic boom of the last 15years, will now be out of reach for millions.
However, it doesn't have to be this way. Although the numbers have changed, the principles remain the same. Prospective First Time Buyers must take this chance now as the window of opportunity is going to reduce year after year as we creep towards the continental model.
Look at the current UK property market as if it was a big clothes shop. Would you buy the fashions when they were priced at their peak, or would you wait until the sale was on? Well the sale is well and truly on at the moment. Find yourself a bargain and wait for the day when house prices go up and beyond anyone's wildest expectations. That day may be a lot closer than you think.
http://www.uncommonadvice.co.uk
Article Source: http://EzineArticles.com/?expert=Ross_Taylor