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Cash buyers should reap benefits in 2008

Carlton Johnson bases his claim on the fact that there are still pockets in the UK where property is undervalued and therefore will see price rises during the year.

He blames the media for predicting negative equity and zero percent price rises this year, when if fact, he says, nobody really knows what the year holds.

'When it comes to UK property predictions, history does prove one thing. It proves time and time again that the media hasn't got a clue and is often wrong. Their job is to sell newspapers and get people to watch their TV programme and often the most profitable way to do this is by selling doom and gloom,' he commented.

'At the heart of the UK property market is the basic law of supply and demand. So, while demand far out strips supply then we can confidently predict that long term prices will increase. There are other economic factors that have to be taken into consideration, but as a general rule, this law normally holds true. However, that is not to say that in the short term they won't remain stagnant or even go backwards.'

He believes the fact that the bank of England is pumping £50 billion into the financial sector to try and revitalise the mortgage market is extremely good news. 'This is an extremely proactive and unprecedented measure to try and keep the UK economy as stable as possible,' he said.

'It may take several months for property buyers to feel the benefits of the money, but long term it should help to ensure the economy does not end up in the same mess as it did in the 1990's,' he added.

His conclusion is that: 'Even although 2008 is likely to be a volatile year for property owners, for the astute investor who has a big cash reserve and knows where to locate the undervalued properties, because of less competition from other investors who are trying to sit out the current uncertainty in the market, this year could prove to be one of their most profitable ever.'

And there are locations such as Scotland and London that are still bucking this trend.

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