UK property trends, markets and conditions, higher interest rates, problems obtaining a mortgage, difficulties selling a property, why moving is not the best option

Market conditions, despite all the positive hype are likely to drive prices down this year at a rate most property investors will find most uncomfortable. Market trends are likely to spiral downwards because of a number of factors all coming together at the same time. Buyers having problems getting a mortgage, sellers having difficulties selling properties and being forced into a situation where they have to cut their losses.

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Repossessions are up with hundreds of thousands of property owners facing possible eviction due to insurmountable mortgage arrears. Many property owners who had taken out fixed interest mortgages that are now coming to the end of their terms are also facing far higher monthly repayments. Many will default and others will be forced to stay in their homes rather than move up.

The UK economy is based on people borrowing and spending on credit cards. In the past, the way many of these people would pay off credit card arrears was to borrow themselves out of trouble in order to pay off their credit card arrears. Many would either remortgage or take out a secured loan. They are going to find this far harder to do now. Tighter lending rates, higher interest and lack of equity in their properties have put an end to this.

In short, the spend, spend, spend and then borrow to consolidate debts era has gone for the foreseeable future and many households ill now be looking at ways to cut their monthly outgoings. They certainly won't be moving up, they may want to downgrade their properties but this is not going to be a sellers market.

• Cheap interest remortgages
  
  
• Low cost home improvement loans
  
  
• Competitive mortgage quotes
  
  
• Cheapest credit cards
  
  
• Builders, Plumbers, Electricians
  
  
• Home improvement quotes
  
  
• Home information packs
  
  
• Reduce gas, electricity and telephone bills
  
  
• Money saving ideas
  
  
• Low cost removals
  
  
• Architects
  
  
• Surveyors
  
  
• Conveyancing services
  
  
• Sell you property privately by building your own website and save thousands of pounds on estate agents commissions

Then there are the first time buyers who are going to be watching and waiting. When house prices start to fall, it is an idiot who suddenly jumps in and buys a property immediately without waiting. The savvy property investors who have managed their portfolios properly will also be waiting in the wings like vultures waiting for the time when they feel the market is about to turn.

At the moment, this is neither a buyers or sellers market. We are sitting in a transitional period where many things could happen that will affect the market. If you are considering selling, you are not going to get a quick sale unless you are prepared to reduce your price. On the other hand, if you are considering buying, it is unlikely that you will pick up a bargain, in fact it is more likely that you could get the property cheaper if you are prepared to wait.

Stagnation of the market will cause more repossessions and owners desperate to sell and when this starts to filter through, property prices will start to fall. We won't see a dramatic decline like we did in the late eighties and early nineties, but the lack of money and tighter mortgage controls will keep the market down.

Read on to see what we predict is likely to happen and what the market trends will do.

Home owners who may have considered buying a larger property are more likely to look at the possibilities of extending their homes out or up into the roof to gain extra space. This is an economic and sensible solution as the value of their property will increase significantly and more so once the market returns.

An extra bedroom in the roof or an extension can add 11-15% to the value of your property saving you a fortune on moving. By improving your home, you can save on:

• No conveyancing fees
• No removal costs
• No home information pack
• No stamp duty
• No estate agents fees
• Valuation and survey costs
• Furnishing and redecoration costs
• Far higher mortgage repayments

Read on to discover why you would be best to wait rather than buy or sell in the current market trends.