Calling the top? Premature at best

Posted on Posted in Bubble cycle

Interesting to see commentators starting to call a top on UK property. Notable are the one referring to London last week and now the Hometrack one. In the last property cycle, the bearish commentary started about 2001, so if that is anything to go by then we could see another 6 years to this boom! London has come a long way and policy changes are certainly starting to affect demand for more expensive properties in west london. In pockets like Mayfair, Kensington and Chelsea, we may well have seen a top. But to extrapolate this trend to the rest of UK would premature in the extreme. East London, areas surrounding London and provincial cites are still seeing strong rises. In particular smaller less expensive properties that are still relatively affordable to UK owner occupiers and Buy-to-letters buying with mortgages still have great potential to see price increase in this property cycle. Now is the time to chose property type an location carefully in order to maximise income and capital growth. Infrastructure changes and gentrification of areas that were previously undesirable are two of the best keys to wise purchases.

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