Independent analyst firm Datamonitor suggests that a range of factors, including rapid growth in house prices nationwide and the rising levels of personal debt management problems, could cause problems for Britain’s housing market.
However, while noting the potentially for serious housing market problems, Datamonitor does suggest that the strong economy and continuing demand for property in the UK is helping to prevent a price crash from occurring.
“Such buoyant housing activity cannot be sustained in the long-term and, undoubtedly, house prices cannot keep going up forever,” said Karina Purang, Datamonitor’s financial services analyst.
“Datamonitor does not believe the housing market is on the road to a house price crash, mainly because the economy remains healthy, but the threat of a boom and bust cycle is still present.”
Meanwhile, a recent report from the Consumer Credit Counseling Service suggested that mortgage repayments will leave British homeowners on the financial rack for the duration of this year.