Ooops – it could be worse and interest rates stay low
CEBR – a well respected economic think tank – have predicted that UK interest rates could say as low as 2% for 5 years.
This contrasts with the money market´s view (as discussed in the post on 5 year fixed rates below) that interest base rates will rise to around 4% in the next 18 to 24 months.
However, this is not good news for property owners – as it would be accompanied by a ´major re-rating in share and property assets´. In other words, for interest rates to stay low, there would need to be a major decline in property prices. Would 30% decline be major? May be.
So, perversely, UK property investors must be hoping for higher interest rates as this would signal that the declines in property prices would be less.
Either way, UK property is a weak market and offers that allow you to sell on reasonable terms should be taken.
“Either way, UK property is a sick market and any offer that allows you to sell on accept on reasonable terms should be accepted with open arms.”
A bit late to be a pessimist…
property prices are going up now.. so isnt it a good time to invest again???