Stuart Law, CEO at Assetz, comments on the Financial Stability Report

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26th June 2014

“Mr Carney’s comments are sensible other than implying that London is not a bubble - it isn't a bubble caused by speculators but it is most certainly a location that has seen totally excessive demand over supply that has driven up prices. This does create a risk for people purchasing at today's elevated prices should any kind of shock to the system occur. It is entirely possible that the Financial Policy Committee could introduce a shock to the system by over controlling mortgage application tests.

“Regarding investors’ search for yield, this is a global issue and not limited to the housing market. Indeed, UK buy-to-let investments have seen a substantial yield reduction in the last year or two but there are still very healthy yields to be achieved on investment property in the UK and we expect demand to continue, especially with poor interest rates from banks for the foreseeable future. Alternative assets other than buy-to-let such as shares or investment funds tend to have more substantial capital risk and we expect people to continue to choose the relatively stable investment asset class of buy-to-let.”

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Stuart Law

Stuart Law, CEO of Assetz Plc, is an experienced & active investor in property, whose views are often sought by the media. Stuart Law's Property Investment Blog