Property Prices are all About Supply and Demand

House prices are very much driven by SUPPLY and DEMAND.

The Future is impossible to predict but there was an adopted perception of the future of property prices driven by DEMAND and SUPPLY.

This perceived future saw house prices inflated by that UK obsession with property and fueled by the relaxed credit available.

The UK unlike the States would also have the added pressure of population growth and limited space.

Another adopted perception was the UK's very crowded little island, was all set to get even more crowded.

We also saw the UK as one that was free to set up single occupancy dwellings, because we could afford to. ( sorry my wifes getting on my nerves - I'm off to get my own flat and then I can watch whatever I want on my big 42" widescreen!)

The UK had lots of jobs and not enough people who wanted to do them, so we asked people from other countries to do them for us, so they did. This put added pressure on SUPPLY.

All this made you think that house prices would keep going up because of - SUPPLY and DEMAND.

However let's go back and have a look at an alternative future.

People go off property programmes - they have lost so much money on property and they don't want to keep been reminded of it,so people become fed up of property.(imagine - the love affair with property and the UK public is over)

Credit becomes tight - people just can't get any decent loan rate or LTV.

People start sharing more, couples start putting up with each others bad habits, because they can't afford not to, and instead single occupancy levels reduce.

We don't have enough jobs to go round, immigration laws tighten and the population doesn't grow to 70 million but instead remains static. ( why would you move here if there were no jobs?).

Property prices are all about SUPPLY and DEMAND.

Now Back to the Future.

Darling Margo