Where are UK property prices heading following the Credit Crunch?

Over the years, all housebuilders have asked the rhetorical question - "Why rent when you can buy?" - but few have actually listened to the answers. It is usually true that, on a month by month basis, and given the deals that most people can currently get when buying new-build, it is cheaper to buy than rent. So why do people continue to pour their money into a landlord's pocket?

One sure sign that the UK Residential property market is on the road to recovery, is the increase in investment among the developers. And not just traditional investment in land purchase and site starts, but also the more unusual and high value projects too. But when the investments are personal, where the money involved has come from the pockets of the decision makers themselves, rather than the long suffering shareholders, well, at that point, you just know that things are changing. Whether it’s Steve Morgan’s welcome decision to stride back into Redrow or the directors at Taylor Wimpey investing in the company’s shares, industry professionals are making it clear where they believe the market is headed.

There is an old adage that asks "if you take a man and put his feet in the freezer and his head in the oven, is he, on average, comfortable?" You see, the problem with averages is that while they may suit politicians, statisticians and strategists, they don’t necessarily help when determining specific short term tactical decisions.