Have A Merry Christmas & A Prosperous 2008!

Dear Readers

This will be my last post before christmas and I will give a few final thoughts of what I think will happen to the UK property market in 2008.

Firstly, it seems that the Bank of England are going to 'agressively' cut interest rates next year to save the economy from slipping into a recession and also stop the dramatic slow down of the property market. This will come as good news to property investors and homeowners as the costs of borrowing will gradually fall next year as interest rates are cut.

As regards to the expected performance of the property market as a whole next year, I certainly feel that there will be little or no growth on average and some areas such as Greater London may actually see falls in property prices as the availability of credit dries up and hence demand for property falls. The only area where prices could potentially still see good price rises is the Scottish property market which is expected to see an average property price growth of over 7% in the next 2 years.

I feel that 2008 is a very uncertain year for the economy and the UK property market and making an accurate prediction at this stage is pretty much impossible. However, with interest rates being cut aggressively next year, I would hope that this will slowly stabilise the economy and the property market with credit becoming slowly cheaper once again and demand slowly coming back gradually amongst property buyers in 2008.

This certainly has been a huge year for the UK and global economy and the UK property market and hopefully 2008 will see a more positive year all around.

Finally, I would just like to wish all of our readers and customers a very happy christmas and a prosperous 2008!

Merry Christmas!

Grant Delmege

Zone 4 Property

http://www.zone4property.co.uk

Bank of England Drop Interest Rates to 5.5%

Dear Readers,

The Bank of England dropped interest rates yesterday to 5.5% which is possibly one of the most important decisions the MPC have made in a decade.

It is widely regarded that the UK economy and property market is on a knife edge following the summers credit crunch and the MPC's decisions over the next 6 to 12 months could decide whether the UK's property market sees a big fall or whether confidence returns back into the property market by gradually easing interest rates over the next 12 months.

Many of the UK's leading economists are predicting falls in property prices next year ranging from 10% to a flat property market. However, I believe that if interest rates slowly fall next year, I predict that at worst there will be marginal drops in some areas or stagnant growth.

Many economists are predicting interest rates to fall further next year in a bid to halt falling confidence in the property market and to make sure the economy remains buoyant.

I personally feel that 2008 could be the most significant year the UK has seen in over a decade for the future prosperity and well being of the UK property market and the economy. The Bank of England hold all the keys to make sure that the UK does not see a property slump or a struggling economy.

My own personal view is that interest rates will fall by a minimum of 0.5% next year which will hopefully mean that property prices will remain stagnant at worst, but I guess we will have to see!

Until next time, invest wisely.

Kind Regards

Grant Delmege

Zone 4 Property

http://www.zone4property.co.uk