Property Prices In The UK Will Remain Strong 02 07 2007 - News Archive

Property Prices In The UK Will Remain Strong

The already strong price of UK Property is not about to experience a sharp fall. This is despite fears over increasing interest rates, says the chairman of the Bank of England’s property advisory forum.

There is a concern, shared by many home owners, that the Bank of England will raise the base rate again next month, adding to the 4 rises already since last August. This would put further pressure on a market already suffering issues of affordability alongside rising debt.

"Everyone assumes base rates going up has got to be bad for the UK housing market, and of course it is, but there are broader issues," said Credit Suisse European real estate investment banker Ian Marcus who also chairs the Bank of Englands's Property Forum.

He continued, "Affordability and employment, which are long-term drivers, are at long-term averages, demographics are in favour and supply/demand is out of kilter, so I remain as confident as I can be that I do not think residential prices are going to plummet in any shape or form."
 
:: Added on: 02:07:2007 ::

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