Negotiation, Negotiation, Negotiation

UK Property Investment news and comments from Mark Harrison of YourPropertyExpert.com

UK house prices in “going up in December shock”

Posted by markharrison on January 9, 2008

According to a report in the Motley Fool, average house prices went up 1.3% in December, having gone down in September, October and November.

The fool are quick to point out that most analysts see this as a temporary blip, rather than a turn-around.

With the Bank of England’s Monetary Policy Committee due to have its monthly rates meeting tomorrow, this survey probably means that it’s less likely we’ll see a rates cut.

That having been said, the economy is still in poor shape – retail figures in December were the worst for three years expect for food, with DSG (Currys and PC World) having issued a profits warning, and Next also talking about a poor December. On the flip side, Waitrose’s sales were up 28.5%!

Back in June 2006, I wrote an article about how the BoE actually sets interest rates, and what this means for property investors.

At the time, my conclusion was:

However, if your IFA tells you that they KNOW that interest rates are GOING TO GO UP (or, for that matter, down), then I would suggest that you run away, fast.

Were I writing the article today, I’d probably make one change… The word “UP” would become “DOWN”.

One Response to “UK house prices in “going up in December shock””

  1. Update: Marks and Spencer have released their sales figures. To quote Robert Peston again:

    “In [general] areas, overall sales were down a fraction; and sales adjusting for new selling space, or like for like sales, were more than 3 per cent lower.

    To achieve even that uninspiring performance, Marks had to charge 6 per cent less than in the previous year.”

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