The housing market has been a profitable place to invest in the last few decades. A fundamental imbalance between supply and demand, as well as a loose monetary policy in recent years, have contributed to a purple patch for the industry.
It has provided an alternative to dividends, bond coupon payments and interest on cash balances for income investors. Although it now faces uncertainty brought about by Brexit, political risks and affordability issues, it could still prove to be a sound investment opportunity in the long run.
In the short run, the UK housing market could experience volatility. Houses could become less affordable due to the potential for an interest rate rise. The Bank of England voted 5-3 to maintain interest rates at 0.25% at the recent MPC meeting, and this could signify a gradual tightening in monetary policy. Higher interest rates could make mortgages less affordable.
by Victor Hill| Equities| 16 mins. to read Things are changing in the aviation business. Three new trends in aircraft technology are about to revolutionise the industry. First, a new generation of super-long range aircraft are coming into service, meaning that flights from the UK to Australia will soon all be non-stop.
by Evil Knievil| Evil Diaries| 1 mins. to read Readers may recall my reservation over buying Six Hundred Group (SIXH) in that the price was so low there had to be the possibility of a hidden horror. Well, this morning's figures for the year ended 1st April 2017 put all that to bed.
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