Eq­uity ‘key driver of mar­ket prices’

Yorkshire Post - Property - - PROPERTY -

SAV­ILLS has been ob­serv­ing the prime mar­ket be­hav­iour for over 30 years and has no­ticed that trends are in­flu­enced by eq­uity rather than mort­gage rates, lend­ing poli­cies or the world of debt in gen­eral.

They say that it is new wealth, bonuses, sav­ings and in­vest­ment, do­mes­tic and over­seas, that drives these mar­kets.

Sav­ills say it has long sus­pected the eq­uity used in prime mar­kets has not just leaked but some­times cas­caded into sur­round­ing mar­kets and down into the main­stream mar­kets. Anec­do­tal ev­i­dence has pointed to such a “cham­pagne tower ef­fect” but it is dif­fi­cult to mea­sure and has been ig­nored de­spite be­ing an in­creas­ingly ob­vi­ous com­po­nent of UK hous­ing mar­ket be­hav­iour.

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