YOUR PORTFOLIO Buy or rent ?
Performance of indices over 40yrs
Bank of England Base Rate ( 617.0 %) UK House Prices ( England ) ( 1348.3 %)
1,400 % 1,200 % 1,000 % 800 % 600 % 400 % 200 %
0 % -200%
Nov82 |
Nov86 |
Nov90 |
Nov94 |
Nov98 |
Nov02 |
Nov06 |
Nov10 |
Nov14 |
Nov18 |
Source : FE Analytics
got to be cognisant there is a lot going on in the world and there may be a period where there is not as much demand ,” he says . “ But because supply has dwindled as well , it kind of counters it .” Arora thinks the middle and luxury areas of the market will remain resilient , but expects a downturn at the lower end as higher mortgage costs hit buyers on a budget . He says the stamp duty reduction may cancel out higher interest rates , before adding : “ I don ’ t know what ’ s going to happen in 12 months when the base rate may go up to 4 or 5 %.
We ’ re still seeing active buyers and the only people that have pulled out are those that literally can ’ t afford it . “ Investors are still there , especially international ones as the pound is weak , so personally I don ’ t think the market is going to tank as much as some people are predicting .” We should remember a house price correction isn ’ t bad for everyone . It gives more borrowers the chance to get on the property ladder , freeing up rental homes for those who can ’ t afford to buy . For most people , a property isn ’ t an investment , but somewhere to live .
/ 38 / trustnet . com