Property is at its most affordable in 12 years, Halifax

Nicholas Ayre of UK buying agents Home Fusion said: “If ever there were a disconnect between house prices and the economy then surely this is it.

“For house prices to have risen in July and over the three months leading up to it is incongruous given the state of the domestic and global economy.”

He claimed that the Halifax is “optimistic” when it says that low rates and a slowly improving economy will support demand.

Mr Ayre said: “We are on the verge of global meltdown and so the ongoing growth of the UK economy is open to question.

“The overall stagnation in prices we have seen over the past year or so may soon come to an end as global forces cause the market to unravel. Even London, which has defied market conditions over the past year, could come under severe pressure given the nature of the crisis unfolding.

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House prices edged higher in June, government reports

Nicholas Ayre, director of property website Home Fusion, said: ‘There is still a disparity between house prices and the economy’.

‘The main house price indices seem to be showing small incremental price rises which are incongruous given the state of the domestic and global economy,’ he said. ‘What is actually being seen on the ground is a stagnation in prices, a property market ambling along with very little direction, which could unravel in spectacular fashion if global forces take hold’.

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House prices creep up in July

But Nicholas Ayre of property agent HomeFusion said the Halifax was being “optimistic” when it said low rates and a slowly improving economy will support demand.

He said global economic instability could hit prices in London the hardest: “The overall stagnation in prices we have seen over the past year or so may soon come to an end as global forces cause the market to unravel. Even London, which has defied market conditions over the past year, could come under severe pressure given the nature of the crisis unfolding.

“To date, the capital has thrived on the back of strong demand from international buyers and its relatively strong local economy, but the way things are going, who knows? Until people are genuinely confident about the economy and their own financial security the property market will remain very much on the back foot.”

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Gulf Business interview

Nicholas Ayre, a buying agent at London-based property search firm, Home Fusion, said: “Some buyers will use their houses a few months a year when its really too hot to be in the Middle East and others may spend longer periods of time in the UK. Some buy for their children to have a place to live in while they are at university in the UK. In all cases the properties need to be what we call ‘lock up and leave’, so good security while they are unoccupied.”

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