House prices were buoyant in the 1980s

For those of us who remember the 1980s, it can be galling to see what has happened to the housing market in the past five years. A steady decline in house prices has almost brought trade to a standstill, and although there are whispers of a recovery now it will be some time before it ever returns to its former vibrant glory.

Back in the 80s, a home owner could put a house or flat on the market and within weeks, sometimes even days, there would be several people queuing up to pay the place a visit. If a residence had been lived in for a decade or more already, the chances are there would be a substantial sum of money to be made through the equity.

Throughout the decade, there were stories of sudden wealth and instant profit in all areas of the country, from Northern Ireland to Kent, and from Cornwall to Inverness. Even in areas in which the housing market was traditionally rather quiet, the knock-on effect would mean that house prices would be capable of reaching all-time highs.

Almost as soon as the decade was over, so the housing market began to steady. Needless to say, rapid increases in values couldn’t continue, purely because the inevitable result would be that most people would end up being priced out of the market. First-time buyers, for example, would find it extremely difficult to raise enough money for a deposit.

Since the turn of the century, a gradual decline in the number of houses and flats that were placed on the market has led to a drop in the number of property sales that have occurred year on year. And in the last few years the crippling economic recession has often led to something of a stagnation. It has been a worrying time for everyone in the industry.

It’s to be hoped that an upturn is just around the corner, although even the most optimistic forecasts insist it will still be a slow recovery process. All over the UK, there are occasional glimpses of improvement, so it will be interesting to see what happens to house prices in the next twelve months. As always, we need to watch this space and see what develops.