Even in 2007 following significant increases in interest rates, surveys by UK mortgage lenders suggested house price inflation of over 10% a year.

But since the peak in August and September 2007 coinciding with the start of the  credit crunch ending the availability of cheap mortgages house prices in the UK have fallen significantly. We regularly report on house price indexes in the My Money Jungle blog.

As with any investment though nothing is certain and many ill informed property investors have lost a lot of money! For example, buying a run down property only to find the renovation is far more costly than planned.

In the UK economists are divided on what will happen to house prices, some point to demand outstripping supply cleading to a recovery in house prices in 2009/10, others point to high mortgage interest rates, reluctance of mortgage lenders to lend and the UK economy falling into recession making further falls likely. See also the Housepricecrash website.

There are many things for the prospective real estate investor to consider especially since the worldwide property boom has ended…the message as always is do your research!

You can minimise the risk with the right knowledge and experience and there are many people who can help to advise you further. Visit the business directory for a list of Money Jungle approved advisors and specialists.

See also Investing in Buy to Let and Investing in Overseas Property.

If real estate or land investments interest you then visit www.moneyjungle.net.directory to browse a range of opportunities, consultants and agents.

Useful Links and Articles:

UK House Prices
http://www.home.co.uk/

Home Information Packs are required for all UK home put on the market from 1st June 2007
www.homeinformationpacks.gov.uk

UK eyes property funds for 2006
http://news.bbc.co.uk/1/hi/business/4355291.stm

UK total assets worth £6 trillion
http://news.bbc.co.uk/1/hi/business/5209498.stm

Buying a Property at Auction
http://news.bbc.co.uk/1/hi/business/5042378.stm

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