Tuesday, March 8, 2011
More bear nibbles
"Investors in British residential property are naive. They should look beyond the most recent data: the fourth consecutive month of slowing house price falls (according to the Royal Institution of Chartered Surveyors) and values only 5 per cent below pre-crisis peak (LSL Acadametics). The fundamentals still point to a big drop in prices... The effect of higher rates on housing could be significant. The 75 basis point increase expected by the market will raise average mortgage payments 8 per cent to Â£722 per month, estimates Capital Economics â€“ enough to reduce offering prices"