House Price In 2008 ?pro Buyer Or Pro Seller?

The number of those getting new mortgage fell again in September 2007. Expert believes the house price growth in 2008 from 0% to -3%. The economy is set to slow down in 2008, according to a report from Capital Economics as past rate increases, a weaker global backdrop and tighter credit conditions take their toll on activity, although interest rate cuts are now on the cards, perhaps as soon as next month.

Diana Choyleva of Lombard Street Research said: "We are now clearly at the end of the house price boom. We think there will be a correction next year, although it is unlikely to be as severe as the last crash."

Once buy-to-let concept, alluring many investors to invest in property market is now fast loosing its grip. "A combination of tightening lending criteria and successive interest rate rises has started to hit the buy-to-let market," said Rics housing spokesperson Jeremy Leaf. He warned proposed tax changes could prompt an even larger exodus in 2008.

Many property owners would be more than willing to sell their house. There would be more sellers in market than buyers. Hence selling your property can be irking.

Hence, if you are planning to sell property do it now and do not wait for the coming months expecting U.K property market to take upward turn. The lower approval of mortgage loans clearly indicates there would not be many buyers for your property. The Council of Mortgage Lenders (CML) said "The credit crunch has resulted in funding difficulties for a number of mortgage lenders, reducing their capacity to lend."

In such a scenario can real estate agents help you to sell your property faster?

The problem is to find a potential buyer for your property and real estate agents can help only when there are enough buyers. The home selling process through real estate agents is intimidating and protractive. A long process means lower market value of property.

What is advisable here is to look for cash buyers who can help you ell your property against the clock.

Besides faster disposal of property, which otherwise can squeeze sterling from your pocket because of increased mortgage rate and inflated taxation, the cash buyers offer you sell-to-rent option. That is, if you are selling your property in haste or to save yourself from high mortgage repayments, or for any other personal reasons, you can still live on rent in your house after selling it to the private investors.

Not only this, if after some time you are in a position to buy back the property you can easily do so. U.K. property market in the backdrop of recent economy looks gloomy. But it may grow in coming years. Disinvest to reinvest in future would be the right tactic to combat with the present property market mayhem.

By Andrew Taylors