UK House Prices -The next bubble waiting to burst ??
jl202 - Thu, 22 Dec 05 :
It was clear from a long time ago Capital Economics were engaged in a marketing exercise and had no credibility whatsoever. They were a lone voice of doom for the hardline bears.
Little Beaker - 21 Dec'05 - 08:58 - 15633 of 15641
UK economy is "remarkable"
>>> I take personal credit,
PremierPompey - 20 Dec'05 - 14:31 - 15625 of 15641
jl202
Agreed - I have thought this for a while, perhaps it would need some kind of economic shock to really put things in a tailspin. But maybe that is not too far away.
>>> That's completely the case. Ceteris paribus house prices don't crash just because the income multiple has shifted. There is just no reason for them to do so. One of the positted reasons, that the BtL sector realising poor investment returns would exit precipitating a downward spiral, was again based on heresay that with no basis in fact wildly over-estimated both the size of that market and also the potential impact on the wider marketplace. In domestic property, it is the regular consumer who sets the market price. Only when the consumers' sphincter numero uno is at maximum dilation will prices fall. Up until that point the worst that can happen is retail sales take a tumble, where significant property owners generally aren't the sort who hold checkout jobs anyway,
