Although the mass-suicide of lemmings is disputed (apparently, they’re just following biological urges and can’t always see the edge of a cliff), it would seem that property valuers and analysts are indulging in the same behaviour. The rumour-mill has been cranking out reports that prices in the residential property market will undergo a significant correction of circa 14% after the Spring of 2021.
Is this prescient foresight or doom ‘n’ gloom prognostication? Let’s look at the economic fundamentals.
One side-effect of all this Covid chaos is the growing chasm between residential property consumers and the parlous state of the economy. Read more
As the press media would have us believe, apart from tinkering with VAT, it looks as though Mr Sunak is going to raise the threshold of Stamp Duty as a limp gesture, for a year, to get the residential property market off its knees.
I’m wondering who is, today, advising the Treasury about the state of the residential market? Whoever they may be, the truth is that as a direct result of the government-backed scheme – Right-to-Buy – this has been stoking up the lower end of the market, for some time now and frankly, activity in this sector has been quite brisk and doesn’t really need any further stimulation. Read more
As estate agents offices open up again around the country, we need to adjust to a brave, new post-virus world.
The current ‘lockdown affair’ has been tragic, farcical and surreal. One unexpected side effect has been that everyone has had time to reflect on their lives and discern what is truly worthwhile. The difference between the price of everything and the value of nothing, as Oscar Wilde might say.
So as we come blinking into the sunlight, it’s an opportune time to examine the seismic macroeconomic issues which are rumbling away under our feet, at this very moment. Read more