The property market is a major and complex sector in any developed country. Not only can the property market influence what is happening in the economy, but the economy can also be influenced by the property market.


It can sometimes be hard to understand what’s happening to property values when some areas have price rises and others are falling.

But despite such differences, there are a number of major factors, or drivers, that have a fundamental impact on the property market and which every property investor needs to be aware of to maximise the return on their investment.

First amongst these is the overall state of the economy. When things are going well; people have jobs, money and confidence in the future. With these things in place they are more likely to take on major financial commitments.

When things are not going so well, people worry about losing their job, the cost of living rises and they feel less confident about the future. During these times people hold back from making major financial decisions, such as buying a house.

One of the major economic influences on whether people are able to afford to buy a house is what they have to pay to finance it.