"It seems unlikely prices will dip again" this year, according to the Royal Institution of Chartered Surveyors, who point to limited supply and continuing low interest rates as reasons for faith in UK residential property prices. But - according to the Investors' Chronicle - RICS fails to take note of sterling's relationship with the dollar. In an interesting article, Chris Dillow points out the historical relationship between a strong pound and rising property prices. It's a puzzling relationship, counter-intuitive in many ways, but Dillow links house prices to economic expectations in a way that leads to this:

The message here is simple. If you think the pound will fall, you should also be pessimistic about house prices.

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