People working in the property industry have breathed a sigh of relief as the prices of houses in the UK market rose by a significant amount recently. It is the experts word that over the coming years there will a steady growth rate of ten percent. Hope is existing that the next one and a half years will yield well for the industry overall. This was concluded by the Royal Institute of Chartered Surveyors.

Agents are expecting bonuses to some to them in aid of a rise in house sales. Prospective and present buyers are showing a growing interest in the market-especially in the past years. In a survey conducted covering all areas, the RICS said that a small amount of people are talking of a rise in prices. This was really good. The fact the industry is usually down during the end of the year makes that good.

The average house price balance went up to +4 from –8. Surveys conducted elsewhere have showed that sales of houses have gone up which has consequently increased the advantage of the agents selling houses. Sales have gone up to 23.4 per cent per surveyor. The sales to stock ratio went up one per cent to 31.8 in October from 30.8 in November. The months hold good for the industry. The industry is back up again and is fighting.

One opinion is that the lowering of borrowing rates of intrest is the reason for this. These rates are up for reconsideration by a quarter percent in the coming year when the nations topmost bank, The Bank Of England, will meet for the same purpose. The previous cut in rates saw a good response of the market. The state of the economy too is a reason for this move.

There many people who contradict these statements. They claim the market is falling anyway. They claim that the people in the industry are only fooling themselves with these claims. One particular report said that the rate fell 1.3% in the past year. It claims that it not possible to be so up and about when personal debt and unemployment are high. There is no probability at all of the market doing so well at all the way the economy is.

The problem they say is that the first time customers really cant have their pockets with the holes that a house would cause. They believe that the insane prices are due to the price hikes of the owners and the agents. First time buyers get things going. They get it started and fill-in when the previous new comers start becoming regulars in the industry. The first time buyer is a very necessary and basic part of the property industry's success.

With investors who are sure to come in when REIT’s are introduced the condition is still grim because there are hardly any investors who have their stakes in residential properties through SIPP. There is however a chance with the option of setting up an affordable housing programme. This they say will not really benefit the market as it will not have first time buyers as benefactors.

The catch to this predicament is that the property market in the UK has found itself in, is that one has to pay almost 1000 pounds sterling per month for a mortgage of 150,000 pounds sterling to cover council tax, house insurance, buildings insurance and lastly, heating costs. On top of this he has to pay his rent, fill his and his family’s stomach, pay for the car and its petrol etc. A drop of interest rates by as much as half percent from the present rate of 4.25 will bring the initial payment down by very little and subsequently will bring the overall total payment down by very little too. Credit cards prove to be a bigger burden than any else. How can one expect the average buyer to afford all of it?

Even if the prices of houses increase it is most important that the new entrants in the market will be able to afford the price of one. If the first timers will not help the market much then the buying will go on nevertheless. People who can afford to pay up will buy and then the market will look up for a positive change.