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House prices set to fall says RICS

The Property Market is stagnating is what they should say. We think that the market will fall a few percentage points, then rise, and fall for a few years. In the end the governments inflationary tactics will prevail. The Bank of England can not raise rates very much for fear of another recession, and anyway all this inflation is all imported via commodity price increases. No chance that it is wage expectations. After 5% RPI for a few years the pound in your pocket will seem slimmer. House building is down to a one man band – so the lack of supply will prevent big falls. Plus everyone wants to own a home.

In a few years time house prices will become cheap, and then everybody will pile in. When is this? Maybe 2014/2015 when there is an election.  Those people who have kept a share in property will be grateful!

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