The UK housing market - Will it crash?

House prices in the UK have recently shown a significant drop in the past 4 months.
This was inevitable as the price of houses have been consistently increasing (5000%) since 1983.

Economists have predicted that price of houses will have an average drop of 15% at the very least up till August 2009. This graph just shows exactly that.

House buyers all over the UK have been buying less due to such high prices.
It is for this reason that the chancellor Alistair Darling axed off the stamp duty for 12 months.
This means that all houses on the market for less than £175,000, house buyers won't have to pay this added tax (between 1-4% of stamp duty depending on the price of the house).

What caused this? First of all, the demand for houses has been constantly increasing every year due to groing population. Secondly, interest rates are too high which puts off customers from borrowing. This leads to a decrease in spending because don't have the money to do so. And finally, banks don't lend money as easily as before due to borrowers who do not have a reliable and regular source of finance.

As a consequence of the house prices slowly decreasing, the price of building companies drop. This has made a huge impact on this company as the value of their shares is lower than when the conmpany first started.This gaph shows exactly this.

2008 Results at the BSP

A great year for results for the subject area and one that sets us up well for the changes to the A Level courses this year and the GCSE changes planned for September 09.
Our GCSE grades were exceptional, with 95% of students gaining A* - C, with 52% of the year gaining A* or A. Lachlan Glascott has been commended by EDEXCEL for being in the 'top ten' of the 17,000 students who took the exam this year. Lachlan gained 171/181 possible marks in both the exam paper and the coursework - an achievement to be proud of. This is the second time a GCSE student from the BSP has gained such an award, Lachlan following the success of Sonia Gough five years ago.
A2 grades are also excellent, with 100% of students gaining A - C grades. In many units taken by the y13 students, several candidates scored 100%. One particular paper saw 12/14 students score an A - a suitable reward for the hard work of all the students concerned. All of the students are now waiting to start their university courses, many of them choosing to study in the UK.
A fantastic end to the academic year 07 -08 and a great springboard for this year's work.