UK General Outlook
In terms of outlook, the performance of the UK housing market in 2006 has largely been better than expected, particularly in London and the South East where restricted supply levels have forced buyers to be increasingly competitive in their bids. And, in the short to medium term, the outlook for the housing market remains positive for modest growth. There remains an appetite nationally for bricks and mortar as an asset class and this is unlikely to change. In addition, despite issues of affordability (particularly for first time buyers) the supply and demand balance remains attractive with supply levels low compared with five years ago. These are key factors which give the market strength.
