The State of the Uk Property Market: Key Drivers

Summary

---

The first of a series of four articles on the author's personal perspectives on the state of the UK property market is presented. As several economic components evolve, so does the face of the UK property market. Interest rates are threatening to increase, but a growth in speculative development -- up from practically nothing five years ago to L5 billion in 2005 -- could offset any decline in productivity. And a lack of large office space could force some sizable companies to become pseudo-developers, a situation that seems reasonable considering growth in the UK's gross domestic product remains robust and consumer confidence is high. Yet some of the latest data suggests that real rates and money supply growth are stabilizing, which means asset price growth also might begin to stabilize.

See the full content of this document

Extract

---

The State of the Uk Property Market: Key Drivers

THIS IS THE FIRST OF A SHORT SERIES of four articles with my personal perspective on the state of the property market in the United Kingdom. Initially, I will focus on some of the key drivers and the macro-to-micro picture, then look at the commercial and residential property markets before mopping up the remains of the marketplace, with some clues for lenders and investors (the seeds of doubt) in the final article. Things will inevitably change over the course of the year between the start and finish of the publication of these articles, but I hope...

See the full content of this document

---