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Jan 2006

Surely not - Affordability?  What happened to Yuppies and big mobiles, sun tan centres and XR3is?  ...Elaborate sweaters and white trousers?   Gone, hopefully, but will the introduction of ‘affordability’ be the over-riding memory of the Millennium?

House prices, as we know in the South-East, have been outstripping salaries for years now, and it appears that we may be coming to the point where wages need to catch up a bit.  Predictions for growth in property prices for 2006 are around 2% and that is with the hope of a Spring interest rate cut. 

So we seem to be set for a time of consolidation as opposed to growth, which may not be a bad thing; I drive around the streets of London everyday and bear witness that there are properties being improved on practically every other residential street. 

That Spring cut may spawn a few more refurbs', loft conversions or extensions, but HOLD ON!  What about the dedicated, seasoned, workaholic investor?  Well, if you are one of these chaps (chapettes) that are still very keen to buy, why not consider saving yourself a trip to the Baltics and instead take a drive up the M1 and on to the land of the ‘Auld Enemy’?  Scotland is being touted as the new Klondike. Yes. Forget Skinzigarovia or wherever, Scotland has the best ratio for ‘Affordability’ in the UK, not to mention many areas where the average house price is below £100,000 – and while I’m at it, you may even get yourself a bit of land or forest for a steal.  Although as a generalisation, there is less work and lower paid work in Scotland (please, don’t get me wrong), when balanced with low house prices, a multitude of development opportunities, English-speaking locals and a pretty amazing legal system – Scotland is set be a Win-Win on property investment.  We are talking 23% increase in the last year and 6% on the first quarter of this year, so it will not be long before ‘affordability’ goes out the window. 

Don’t forget where you heard it!