Tuesday, March 4, 2008
2008 will be a tough year – but there’s a silver lining
This time last year, house prices were still rising fast and estate agents in London were swearing that 40% annual rises were both acceptable and sustainable. Agents everywhere were boasting that the UK’s famous housing shortage would keep prices up for ever. But it turns out house prices have been based not on the limited supply of housing at all, but on the excess supply of capital.