Julian Tether <[EMAIL PROTECTED]> wrote: >My prediction for the down turn: >5% in the next 12 months >30-35% over the next 5 years >It will be good to see house prices going back to near where they should >be.
Sorry, Julian, but they *are* where they should be. They always are. House prices are set by the relationship between supply and demand. The demand for houses has been going up sharply for several years. This is because of a rapidly rising UK population (meaning ever more people wanting somewhere to live), and of late very low interest rates (making it possible for a greater proportion of the population to afford mortgages, and thus enter the market). OTOH, the supply of houses has been increasing slowly, because of increasing resistance to turning more of the landscape into building sites. There may well be a price downturn, because interest rates have gone up. However, I expect it to be short-lived, because any slowing of national economic growth (which may be on the horizon) is likely to cause the BofE to reduce interest rates, and the population continues growing disastrously. Have a nice day. Adrian Adrian Stott 07956-299966
