Even in 2007 following significant increases in interest rates, surveys by UK mortgage lenders suggest house price inflation of over 10% a year.

As with any investment though nothing is certain and many ill informed property investors have lost a lot of money! For example, buying a run down property only to find the renovation is far more costly than planned.

In the UK economists are divided on what will happen to house prices, some point to demand outstripping supply continuing to fuel house price inflation, others point to higher interest rates and other factors making a price correction likely with prices falling by as much as 20%. See also the Housepricecrash website.

The Money Jungle blog includes an article on the apparent impact of building to meet housing demand on house prices.

What will happen next to house prices?
BBC NEWS | Business | What will happen next to house prices?

There are many things for the prospective real estate investor to consider and although there seems to have been a global property boom, many things could slow, halt or even reverse this trend…the message as always is do your research!

You can minimise the risk with the right knowledge and experience and there are many people who can help to advise you further. Visit the business directory for a list of Money Jungle approved advisors and specialists.

See also Investing in Buy to Let and Investing in Overseas Property.

If real estate or land investments interest you then visit www.moneyjungle.net.directory to browse a range of opportunities, consultants and agents.

Useful Links and Articles:

UK House Prices
http://www.home.co.uk/

Home Information Packs are required for all UK home put on the market from 1st June 2007
www.homeinformationpacks.gov.uk

UK eyes property funds for 2006
http://news.bbc.co.uk/1/hi/business/4355291.stm

UK total assets worth £6 trillion
http://news.bbc.co.uk/1/hi/business/5209498.stm

Buying a Property at Auction
http://news.bbc.co.uk/1/hi/business/5042378.stm

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