By Nick Taylor, of Hadley Taylor estate agents in Norwich
So the writing’s on the wall. According to leading economists interest rates in this country and indeed in virtually every other developed economy are due to remain low for several years and this will unfortunately mean poor returns for savers. Property would seem to be the logical investment vehicle of choice for those looking for better returns with residential yields in the region of 5% and with the prospect of capitol appreciation into the bargain.
Residential property prices are starting to creep up if we are to believe the various house price indices but these trends are based on a relatively small sample due to the low number of transactions and so we shouldn’t read too much into them. Price inflation is also due almost entirely to the lack of property currently on the market. This shortage in supply inevitably pushes prices up.
So whilst I see a very interesting time ahead for property, we would all do well to remember that buyers, sellers and agents are always at the mercy of the market and the forces of supply and demand.
*Nick’s on 01603 250248.