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”.