The rock that stopped rocking
This is the 4th part in a series of short stories looking back over the past decade.....
At starting this note it was the 11th of September. 10 years ago today we were all horrified to hear of the events at the Twin Towers, now always to be remembered as the day of 9/11. It quite rightly attracted unprecedented international media attention and acted as a saddening distraction from the other major global event, that being the imminent demise of the global banking system. Each day as we move closer to that inevitable outcome the UK property market slowly but surely was grinding to a holt. Properties stopped coming to the market, mortgage applications were being rejected, both buyers and sellers were withdrawing from transactions and everything to do with the property market seemed to be effected by a mood of disbelief and despair. 10 years ago, today we saw the collapse of Northern Rock http://www.bbc.co.uk/news/business-41229513 which was considered to be a lesson to the UK banking system. Nothing is sacred and nothing was safe but this of course was a disaster which could have been avoided had the political classes and in particular Gordon Brown, the then PM, had not considered that we would shake this recession off in 6 months. There are lots of dates when people considered that the housing crash started but it was this day. The 12 of September 2007 when the effect reverberated throughout every estate agents’ office throughout the United Kingdom.
Even though, to an extent the nation still suffers through austerity measures and the dynamics of the market place have changed immeasurably the good old reliable UK property market has been fully restored. Values fully recovered and still for many in a growth cycle and certainly likely to continue that way as it always has done. The boom or bust economic cycle is almost certainly to be with us for generations but as an almost certainty bricks and mortar in the UK will remain one of the better places to invest your hard-earned cash.