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Originally Posted by jimeve  I've no intention of selling if things get worse I will rent out and move to Philippines. It seams there is a knock on effect in the Fils, House prices getting higher also rent, specially around metro Dumaguete.
House prices in the UK was over inflated in the first place, they went up
to quickly, over 8 years they trebled in value. |
There are, apparently, 1 million empty tenanted properties in the UK at the moment, and, like sales prices, rental prices are plunging.
There were several "false" markets which contributed to the huge price rises in UK properties.
First and foremost were the buy-to-letters, a modern and unusual market which resulted in a previously-unknown demand for such properties. This was probably a result of all those diy property shows and the willingness of banks to fall over themselves to lend money to a sector of society who wouldn't normally be in that market.
Then there were the nouveau-riche of old East Europe, particularly Russian millionaires, who have been buying everything. Again, an unusual market.
Then there were the parents who were re-mortgaging their own properties in order to get their kids on an increasingly-expensive property market.
All of these unusual markets contributed to increased demand among the types of people who wouldn't usually be in such a market which meant that the natural rise in property prices was hiked up leaving the more usual buyers in the cold. When those more usual buyers can afford to move on, house prices will settle down.