UK House Prices to Crash in 2008?

House price rises that year on year have forced first time buyers out of the market are set to fall dramatically according to some of the world's leading financial commentators.

House prices have risen massively in the last 5 years, whereas rents have stayed almost the same during the same period. Once upon a time, it made sense to buy a property and you could be paying less each month than the equivalent rent.

These days, with the average house at around £200,000, and the cost of a reasonable mortgage from a reputable lender costing around £600pcm for every £100,000 borrowed, the average buyer with an 85% mortgage could be paying one and half times the average local rent, without even factoring in the costs of insurance, mortgage indemnity fees, arrangement fees, early repayment penalties when you sell, and general maintenance.

All things that you don't pay for when renting!

If this is true, then now might be the right time to sell up cash in on some of your equity, pass the management of your home onto someone else and pay less each month, giving you more money in your pocket for the things that matter to you and your family. Holidays, cars, eating out, hobbys and pastimes.