In a recent study scientists have looked into the machinations and behavioural patterns of property prices and have come to the stark conclusion that property has a mind of its own. What a revelation!
An ability to stare into the ‘property crystal-ball’ and gain a clear insight into the vicissitudes of the London market would be an extremely valuable asset. Pricing property in ‘current market conditions’ is as much an art as a science – let alone predicting its future price movements.
The majority of property clients are looking for an analysis to explain property values. Many of them work within the financial services sector and are used to receiving exhaustive research within their own industries. Everyone wants to understand property and are incredulous at the abstract nature of pricing: property moves in a mysterious way.
The column inches relating to property prices seem to increase annually and the recent politicisation of property is only part of a trend that has been developing for a number of years. Popular press-enhanced property-bashing for political purposes has results in vast Stamp Duty Land Tax increases and talk of a ‘Mansion Tax’. So much seems to be riding on the ‘property bandwagon’ – its a right old roller-coaster ride. It is almost impossible to predict future movements of prices and, despite the authoritative tones of some research with extensively-published predictions, most of them are rarely right.
However, one thing is certain, Newton’s Law does not apply to property prices in the long term (unless you are talking physically and in the really long term – no building lasts forever!) How the mind of property functions is something that is going to continue to vex and puzzle us for a very long time.