The United States are more often than not the indicators to how the British economy will perform.

Property is no different.

The US saw their property downturn begin in 2006 and a year later Britain began its own property downturn. However Uncle Sam is rebuilding and some of their market commentators are in fact stating that the worst is over for them.

This is a positive for Britain.

How is their revival happening and how is this indicative to our future?

Well, firstly the market must stabilise and this has been the case in the US since autumn 2007, though any growth is still not widely evident.

Secondly, have the balance of supply improved, avoiding saturation, and more aligned to demand. The balance of new homes being built and being sold must improve to put pressure on prices to go up. This is happening Stateside.

Thirdly, property must be affordable. No two ways around this. This must happen and like us the Americans are having difficulty borrowing despite their salary income increasing.

And finally, the government must do all it can to address the issues that they have the power to influence. To mitigate the danger of either or both of Fannie Mae and Freddie Mac going bust the US have recently passed laws which explicitly requires the government to inject capital into the companies if it is deemed necessary to protect them.