I have already stated that I dont think UK house prices will drop this year, and if they do, any drop will be minimal. I think in the current climate UK houses are fairly priced. I have also said that if we have a financial melt-down all bets are off.
For those of you who dont expect financial market crashes reverberating around the world this year I guess now is as good a time to buy as any. I note the guide prices given at auction seem very reasonable. The February auctions I am covering seem to offer some very good deals. However, I would still be cautious in any bidding. We are still in a risk environment, and I think the bad times are not yet behind us, so by all means pick up a bargain, but dont bid it up until it is no longer a bargain.
The main warning concerns interest rates. If things get bad, interest rates will have to rise, if for no other reason than to attract investment. Even if things go well interest rates will still have to rise. Bear that in mind when obtaining a mortgage. Do the calculations based on a 2% increase in the rate. If your business model doesn’t handle that, then you should not be buying.
Good luck. I dont usually say that, but these days you dont just need a good business model, you need a good dose of luck to go with it.