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In the current economic climate, even those on the property ladder need to consider their situation. Commenting on the 90s property crash, UpMyStreet user Paula, says "...my previous experiences mean we've been determinedly paying off extra on the mortgage every month for the last 10 years and it's not going to affect us this time round. To be honest I'm kinda hoping for a 33% drop so that we can afford to move up to something better."
Stay put
In the last few months, every feasible prediction has been made about the property market - from a 25% increase in prices by 2012 (National Housing Federation) to a 35% drop by 2010 (Capital Economics). But predictions aside, there is nothing wrong with sitting tight. If you have a suitable property for your needs, and your finances are in a good shape, there is no immediate cause for concern.
Don't move - improve
When the property market was booming, the advice was to improve your home to increase its value for sale. Now that house sales have hit their lowest level for decades, the advice for homeowners is to improve the space they're living in. A survey by CreditExpert found that 91% of people looking to move have put their plans on hold until the financial situation improves.
There are lots of ways to improve your home, with projects for every budget - whether you're planning on repainting a few rooms, or adding a loft conversion.
Reduce your outgoings
With Charles Bean, the Deputy Governor of the Bank of England, declaring that the economy now is as bad as it was in the seventies, homeowners should be keeping a close watch on their finances. According to a new report by comparison site uSwitch, UK households are £2,500 worse off this year than in 2007, and average pay rises are below inflation at 3.7%. The advice from financial experts is simple - pay as little as possible for your monthly outgoings, such as gas & electricity, phone bills and home insurance.
Related articles
The fall of the house price
- September 2007 - house prices begin to their decline after the Northern rock crisis
- February 2008 - house prices fall 2.5% in just one month (Halifax)
- April 2008 - first year on year fall for 12 years (Nationwide)
- July 2008 - mortgage approvals down 71% on the previous year (Bank of England)
- August 2008 - house prices fall 10.5% in a year (Nationwide)
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Often, many of the people who live in this sort of postcode will have middle incomes and live in areas of home owning. These are known as type 27 in the ACORN classification and 2.99% of the UK's population live in this type.
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