The property market in UK has still not managed to escape the danger of a collapse, according to new research .
A report shows that increase in interest rates and personal debt and tension over the future of sub-prime mortgages could trigger house prices to tumble .
According to the figures revealed by Datamonitor, the market for UK Mortgages has risen to £344.9 billion from £288.4 billion last year. Since 2002 the average unsecured debt in the UK has increased from £3,670 to £4,522.
Karina Purang, Datamonitor's financial services analyst and author of the report said while she is not sure she however believes that the housing market would definitely crash. She added, "the threat of a boom and bust cycle" remained, even in the face of the UK's healthy economy.
She said, "A number of issues such as high levels of personal debt, averaging £4,522 per person, could have a considerable impact on the future performance of the mortgage market ."
"Such buoyant housing activity cannot be sustained in the long-term and, undoubtedly, house prices cannot keep going up forever."
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Personal debt could prompt property crash
Tue, 17 Apr 2007
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