Released on: April 29, 2008, 3:44 am

Press Release Author: Jim watson

Industry: Real Estate

Press Release Summary: That there has been a drop in house prices in recent months
is largely agreed, even if some surveys, such as the Financial Times House Price
Index, have consistently indicated a static picture.


Press Release Body: That there has been a drop in house prices in recent months is
largely agreed, even if some surveys, such as the Financial Times House Price Index,
have consistently indicated a static picture. But the March figure of no change
recorded in that survey, plus the February figures from the Land Registry which gave
the same result, still amount to a fall of sorts, in the sense that as other prices
rise and earnings increase the comparative cost drops.

Nonetheless, these surveys have been accompanied by other news suggesting a more
significant drop in the market, such as the 2.5 per cent decline reported by Halifax
in March. While it may be erroneous to read too much into one month\'s figures, many
appear to have reacted just that way.

Such a reaction is wrong, however, suggested Liam Halligan, chief economist at
Prosperity Capital Management. Writing in the Sunday Telegraph, he argued that there
is no reason for panic, no crash in the offing - even based on the Halifax figures -
and that, apart from that, a certain level of correction after a couple of boom
years was a necessary event.

He stated: \"It [the market] has over-heated in recent years and needs to slow. Were
prices to flat-line, or even fall slightly, for a year or two, that would be a good
thing, purging the system of excess.\"

Adding that the sub-prime situation was \"not disastrous\", he concluded: \"The housing
market is slowing, and prices could fall slightly over the next year or two - which
is long overdue.\"

Such an analysis would bring with it a different perspective for anyone involved in
property investment. If periodic corrections to the market enable the situation to
stabilise, affordability issues to be addressed and a major boom-bust cycle to be
avoided, then this could offer a better long-term prospect, whatever the short-term
disadvantages.

Another, wider possibility for the market is that it will see a change in building
trends, so that the markets which are oversupplied become much more evident and a
shift takes place which sees builders concentrate on those segments of the market
where demand remains high.

Such a phenomenon may be happening in Ipswich, according to the town\'s MP Chris
Mole. Speaking to the Suffolk Evening Star, he noted that the price of apartments on
the waterfront had plummeted, but suggested that the situation was the direct result
of excess numbers.

He stated: \"We think that the development of flats was necessary to kick start some
of the regeneration of the Waterfront but probably for 2008 we have got as many as
we need if not too many.\"

Mr Mole suggested that this could now have beneficial effects as builders turned
their attention to the areas of greater demand, commenting: \"If the correction
encourages developers to return to more family housing developments then that would
be something that I, and my colleagues in Ipswich, would welcome.\"

Therefore, while some appear to be shouting bad tidings from the rooftops, the
reality may be very different. It may in fact be the case that, rather than being
about to fall into a black hole, the housing industry is now gathering itself to
regroup, realign and set itself up for the next spate of growth.

In today\'s world Property investment is an excellent investment option especially
investment in UK

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