More price increases due for the housing market in 2007

If you thought house prices had raised a lot in 2006, according to a top loan company we are set for another price rise in 2007. In fact, only ten percent of home brokers said that they thought the house prices would remain the same next year.

The study was conducted to give a rough estimate of what trend the house prices might follow in 2007. Of course it is always going to be a hot topic as it does affect most people within the UK. With house prices currently at their highest, it is hard to imagine them going up anymore but unfortunately it seems highly likely that they will.

Most homeowners these days are struggling to keep up with their mortgage repayments and the varying interest rates that come along with it. So imagine what this could do to thousands of families within the UK. A rise would just about cause many people to have a financial breakdown. Something really does have to be done otherwise in a few years time; nobody will own their own homes!

One can only hope that there will be more shared equity homes available sooner rather than later, but even when more are introduced it will only be for select families. So, just what is it going to take for these house prices to decrease and what is it that makes these companies think that we can afford these ridiculously high rates?

One of the problems seems to be that although these house prices have raised this year, many people are still buying their own homes. Lenders are then thinking that many people can afford the rises, hence more rises are set to appear. What these companies often do not take on board is the fact that many of these people buying their own homes now are setting themselves up for financial hardship as most will struggle to repay their mortgage.