South Bucks is one of the most property rich regions in the UK with average house prices around £300,000. Many buyers in specific areas are paying well over £1m for a five bedroomed, two bathroom property and could well get their fingers burnt in the months ahead.

Estate agents in the area poo-poo suggestions that prices are likely to crash rather than gradually level out but they are not cognisant with worldwide economical affairs. Forward thinking buy-to-let investors are already ditching properties at today's prices rather than hang on to them and find they have got a problem on their hands!

Although this seems to be the way the housing market is heading the influential Organisation for Economic Cooperation and Development takes a more optimistic view.

In its latest twice-yearly report on the world economy it said that "instability from the UK housing market remained a risk" although the strength of house prices has helped us to avoid recession.

It said the 6% appreciation in the pound's value this year would keep inflation down in the short term but inflationary pressures were building. Weak growth in the eurozone, the UK's biggest trading partner, remained a risk which could slow growth and exacerbate trade imbalances.

Reading between the lines suggests that extreme repercussions could have a pronounced affect on home investment and, ultimately, house prices.

[ENDS]

Andrew Leech, Cross Reference Tel: 01753 884216