theRatandMouse - London's property blog

Wed

May

UK property down 70%

What?! It's (guess who) Money Week, with a creative and interesting piece, looking at the value of UK property from a gold standard position. Relevant? Meaningful? Should UK property be priced up as if it's an international commodity? Debatable. But - like I said - interesting:

House prices are now at levels last seen in the early 1990s, at the bottom of the last bear market. The average house price is currently 25% below its average of the last 40 years.

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Comments

Nice blog. Sounds like house prices only have 1 way to go up!!

Posted by Ibot at May 26, 2010 9:16 PM

Comments

Ridiculous: People buy houses in pounds, not in gold. Gold is at an all time high, so clearly in units of gold everything else appears to be falling like a stone.

If you believe this dribble - let me ask you this: how does your yearly income, the price of bread or [the price of your house] change with the price of gold? Not much - so neither does the value of your house.

Posted by at June 8, 2010 10:35 AM

Comments

Comparing one "commodity" against another in an attempt to find some meaningful use out of it is a little pointless, especially as a certain Mr Brown sold most of the UK's gold a few years ago. It would only really become relevant if the pound as a currency disappeared altogether with no other option than to barter in hard goods.