Economic Predictions
	It is said that the only thing two economists will ever agree on is to disagree. However, the consensus is that the property market is not going to collapse - notwithstanding the one or two economists who still believe that disaster is just around the corner.

Instead, prices are generally expected to continue rising in line with inflation, interest rates to remain historically low, and inflation to remain within the Chancellor’s expectations. Whether the next interest rate move is up or down, this is unlikely to have any significant bearing on the housing market - even though individually we may all notice the difference in our mortgage payments. One of the reasons why interest rates are less important nowadays, is the widespread popularity of fixed rate mortgages, which effectively impose a degree of stability on the system. In terms of demand, this is clearly increasing. Indeed, the Government is forecasting a substantial shortfall between the number of new homes being built and the number of new households being created. In any market, restricted demand means higher prices. Lettings are an increasingly important part of the property market, as more and more people are choosing to rent, rather than buy. This decision is not necessarily dictated by issues of affordability. In many cases, it is a straightforward lifestyle choice. Against this background, rents have held steady, and in our view will start to rise as the capital values of the properties concerend rise in line with inflation. Finally, mortgages are still readily available - so whether you buy or rent, the choice is yours.