Property Matters 

Property Matters: Margins calls

Property Matters: Margins calls

House price inflation in the UK has all but disappeared – or is still showing, albeit at a slower pace, depending on which building society you want to follow. One thing remains clear, however, recent but relatively small alarm bells have started to ring because there is a possibility that the rise in average selling prices will not be enough to cover inflation on the input cost side. The latter is running at 3-4 per cent, and a rule of thumb calculation shows that selling price inflation needs to rise at something around half this rate to protect margins.

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