Prudential’s latest index has revealed that consumers’ confidence in property is still high, despite warnings of a house price slowdown. Over half of the population have said that compared to last year, the value of their home has increased, and 70% have seen their disposable income rise or stay the same over the last year.
Savings are also on the rise, and even people’s attitude to borrowing has at last begun to change. Rather than ignoring the dangers of excessive debt, many are beginning to decrease their level of borrowing.
Our view
Property is still a long term safer investment - there will always be demand for bricks, mortar and land. The danger is the people buying at high times. Remember the golden rule for everything, buy low - sell high. Residential property is over valued, commercial property may have some margin still in it.