1
Apr
Paint it Black
Depending upon who is holding the brush will determine whether the
articles that you read in respect of the housing market are black,
laidened with doom, and gloom or white reflecting brighter
prospects ahead. As always at this time of the month the economic
forecasters will be speculating as to the MPC's judgement over the
movement of interest rates. Today most are suggesting that the move
for April could see a quarter point reduction. Many of the
forecasters are now suggesting that as a result there is a
likelihood of a rise in property values. The question is, whilst
the global markets have been in turmoil, how much of this has been
blown entirely out of proportion? As every previous estimate to
falls and loses prove to be entirely unreliable and hugely 'over
egged'. Then we are sure that the same has applied to the negative
expectation as to the performance of the UK property market. It is
true to say that the mortgage markets have changed and on the basis
of 'no pain, no gain' this may serve well for the housing market in
the future. But equally it is likely that the banks and other
financial institutions will once again change their lending
criteria as confidence in the money markets is restored and lending
conditions will improve but with greater and more appropriate
levels of risk management.