Friday, November 12, 2010

What next for Britain’s property prices?

What next for Britain's property prices?

Merryn Somerset Webb asks MoneyWeek's panel of experts where they think Britain's property market - and house prices - are likely to be headed in the coming year.

Posted by damien @ 12:49 PM (2379 views)
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16 thoughts on “What next for Britain’s property prices?

  • sibley's b'stard child says:

    I’m not sure if I loathe Stuart Law because he is of a contrary opinion or whether – quite simply – he’s a supercilious git.

    Merryn: So where will people live?

    Stuart: In rental houses. They will just stop buying fancy handbags and hand the money over to landlords instead. If rents are going up by 5%-10% a year for the next few years then slowing down a bit, that will support house-price growth.

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  • It’s been a while since we’ve heard from Mr Law. Sadly, his forecasts have been better than ours so far.

    “Stuart: The one thing the government needs to protect is the economy. But in driving the economy forwards one way or the other, they are categorically going to create the seeds of the next asset bubble, and that includes property. They’re going to find it hard to separate the incentives to drive the economy, the economic growth, away from things that will drive assets, particularly investment assets. A property buyer, in today’s market, is a real investor. There are no savings returns and people are beginning to see the stability of the British residential system. Does it really matter what happens in one, two, three, four, five years? If they can buy a residential property, with insatiable demand to live in it on a rental basis, giving them already 6% yield with a potential to grow at 5% plus a year? The yield tells you where the value is and you are getting a great income.”

    The quote above is questionable but may sound plausible to the mainstream.

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  • sibley's b'stard child says:

    Looks like there’s an imposter on the comments; Count of Nowhere (from the forum) wouldn’t come out with this guff:

    10. TheCountOfNowhere
    (12 November 2010, 12:20PM) Complain about this comment

    “House prices are recovering now all over the country.

    There is no way on this Earth that prices will be lower in 2011 than they were in 2009. Anyone who thinks so needs to get in the real world.

    The time to buy is now while there are still some great deals out there from mortgage companies.

    Merryn got it right when she bought earlier in the year.”

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  • Arthur Kinnell says:

    Some very astute comments at the bottom of the page, too, from the real world. Can’t help but feel all these experts are trying to talk up the market for their own benefit. Apart from those experts who are trying to talk it down, who are good and wise and know what they are talking about.

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  • Sib’s I spotted that one and thought the same

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  • sibley's b'stard child says:

    Sorry OT…

    Hang about Jack, do you go by the moniker ‘Jack’s Creation’ on the forum?

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  • Sib’s – no I only ever appear on here not the forum (no other blogs etc..) however see http://www.housepricecrash.co.uk/newsblog/2010/10/blog-the-blue-wing-of-the-home-owner-ist-movement-30890.php

    12. jack c said…One of the comments submitted under the article is by jack c – I’ll be generous and put this down to pure coincidence as it definitely did not come from me ! (I’m Spartacus springs to mind)

    Tuesday, October 26, 2010 03:48PM

    The comment on the article subsequently disappeared

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  • sibley's b'stard child says:

    Ah, now I see.

    Glad you posted to that link as I noticed the author of the original article deigned us with his presence. Nice send-off from MW as well….

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  • As it’s Friday………………..

    A psychiatrist asked her multiple personality patient, So, do you feel like you’re cured? He replied, Absolutely, We’ve never felt better.

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  • sibley's b'stard child says:

    If a schizophrenic threatens suicide; is it a hostage situation?

    Ba-dum tshhh…he’s here all week folks.

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  • Schizophrenia beats being alone

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  • mark wadsworth says:

    SBC, I always try to be reasonable and concilitatory, but arguing with David T Breaker was pointless so I insulted him instead. Serve him right.

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  • sibley's b'stard child says:

    Absolutely MW, wasn’t having a pop at you; the guy was beyond reason.

    Quite why he felt the need to justify himself over here is beyond me. Presumably you would think he’d have better things to do. Petitioning against local developments, for instance.

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  • This article again? What is this site, Fox News?No, can’t be…nothing about Sarah Palin.

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  • Hp (as opposed to HPW – sorry couldnt resist) makes the most sense to me. As for Stewyyyy im not sure you are right QG “sadly, his forecasts have been better than ours so far.” in any case let see ;).

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  • Hi folks

    I commented on the article – directly on MoneyWeek, but here it is below. As I say below, sorry for spoiling the party, both for you and myself! I don’t own a property and you probably don’t either, and looks like we are well screwed! :

    @19. Sheldon

    Good to see someone can look beneath the layers. So many contributors on here are only looking at the ‘price in pounds’. I’m Australian (lived in the UK 10 years) and was wishing to move back to Oz. Came here 10 years ago (£1 = $3.05), 2007 (£1=$2.60) and now… £1 = lucky to get $1.50. So, although you think houses have not corrected, they already have: 40 – 50% for foreign buyers such as Australians. The UK government has crashed the currency – easier to fool the masses in thinking their properties ‘priced in pounds’ have not fallen much. I would dearly love a crash to get in on the market but the crash has already happened. I’m stuck as ‘my pounds’ are now worth nothing when I would try to export them to Oz. So, I’m now British! That means frozen wages, and full priced houses against the foreign money getting property for a great deal. Sorry guys to spoil the party, but Sheldon @ 19 is right on the money.

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