Hanging In The Balance

UK property prices have been hovering dangerously around the zero price growth mark for the last couple of months. Year on year growth is of course dropping substantially and we are now just below the 3% annual mark. Definitely one to keep watching.

UK house price inflation fell in August according to the Office of the Deputy Prime Minister, giving further indications of a slowdown in the property market. Annual inflation fell to just 2.8 per cent in August, down from 4 per cent in July and 13.6 per cent a year ago.

The ODPM reported that house price growth in London, which tends to lead overall trends in the market, slowed to 0.8 per cent from 0.9 per cent in July. The average house price in the UK barely changed in August, standing at �186,208 compared with �186,207 in July.

Some analysts have concluded that these numbers suggest that the market might be stabilising at current levels. …But there will be continued concern that as house price inflation on all the main indicators heads towards zero, the current stability in the market will not last. Nervousness is likely to increase as property investors realise they can no longer rely on the prospect of capital gains to offset the reality of low rental yields.

Digitally Scared.

No doubt about it – revolutions are truly scary. Whether you think of the French one, the ones that freed Eastern Europe, or the digital revolution that is currently changing much of the transactional structure of our economies, and in particular the music industry. But contrary to most people, I do pity major label executives who never even stood a chance of understanding just what happened to them. After all, this is an industry where the average person?s desk had not seen a computer in 1996, as some insider once said.

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