UK House Prices -The next bubble waiting to burst ??
dr agon - Wed, 14 Dec 05 :
The pension provider Hargreaves Lansdown made a tentative estimate that 50,000 wealthy individuals would take the plunge in the first year. They would pay an average price of £190,000, thereby injecting an extra £8.5billion into the property market. How does this compare with the size of the market as a whole?
Over the past year, according to the Land Registry, 1,057,202 properties have been sold at an average price of £185,189, making the total housing market worth £195billion. On these figures, Sipps sales would have added an extra five per cent to the amount of money going into the property market. This is a substantial sum, which will now be sorely missed. Clearly, the effect will be disproportionate in those sectors of the market which Sipp investors would have favoured: buy-to-let apartments and holiday cottages.
i think a 5% loss of transactions will make a big difference to the slowing market dont you?
