14
Nov
Credit where credit's due
Given the events of the last week it would be highly inappropriate
to bang on about the strengths and weaknesses of the local market
place when there are greater issues with wider implications at
hand. I have long been renowned for my attacks on our beloved
governor of the Bank of England 'monetary policy committee' and
berated them for their weak reactionary response to handling our
interest rate policy and last week the opportunity to 'stand up and
be counted' could not have been more relevant. Well, credit where
credits due, led by Mervyn King they have at last woken up smelt
the coffee and taken bold and decisive action to initiate a remedy
attempt for this current difficult economic climate. If this
filters through, and realistically there should be no if about it,
and we view it with a sense of optimism the benefits will
undoubtedly flow through to this otherwise beleaguered property
market. So what does this mean for buyers and sellers? According to
the Nationwide CEO whilst values continued to decline in October
the suggestion was that there was evidence that there may be some
stability evolving, this announcement was close on the tail of news
that mortgage applications had risen in September. In that month we
were also warned of rising inflation that has subsequently fallen
sharply. Now whilst beyond all of this there clearly are a great
many global economic issues to be resolved, the property market was
first to suffer and is likely to be the first to respond. Low and
declining interest rates and falling inflation are hugely
influential factors in this. If this were coupled with easier
access to credit then in my view the new year could herald a
change, how significant, well that's down to confidence, nerve and
resilience of the good old British public. As a good friend
recently reminded me of a situation during a previous recession
when a gentlemen who appeared to be maintaining a very affluent
lifestyle was challenged... 'do you not know that there is a
recession on?' his excellent and spontaneous reply was 'yes of
course I do, but I just don't want to take part'. I am not
attempting to make light of these difficult and troubled times but
we are fast becoming victims of a self fulfilling prophecy
instigated entirely by the media, particularly the BBC. I repeat a
philosophical view by which I stand, 'there are those who wait for
things to happen, there are those who watch things happen, those
who make things happen and those who wonder what the hell did
happen'. The question is, where do you stand in this? There is a
game to be played and the sooner everyone follows the recent
courageous example of the MPC the sooner the light will appear at
the end of this gloomy tunnel. Graham Evans, Managing Director, for
Penyards Country Properties