Supply/demand dynamics make residential property an attractive long-term investment

A good indication of the state of the UK residential property market is the health of house building companiesand their shares, as well as the supply-demand ratio

Where the residential market is in the property cycle, for many, is a question of major concern, prompted by the perceived negative effects of the latest interest rate rises and the fact that the residential market has been growing strongly over an extended period. From 2000 to 2005 this latter concern almost reached fever pitch. Nerves were somewhat soothed when something of a correction occurred in 2005. But although this correction turned out to be a bit of a non event, some felt that it could lead to a drop in house prices by as much as 30%. There are those who still believe in this eve...