Updated 2nd Edition
In the two and a half years since the first edition appeared, events have unfolded as predicted. In 2005 the consensus among forecasters was that the boom in house prices would cool to an annual 2 or 3% rise over the following years. In fact, in keeping with the 'winner's curse' phase of the cycle described by the author, prices have risen by more than 10% per annum.
The author reveals that the government's monetary policy only has a marginal impact on land speculation, but as the Bank of England raises interest rates to curb house price inflation, the main victim is the first-time buyer and the productive economy, especially small businesses. The only way to neutralise the boom bust cycle is through a reform of taxation, he claims.
Reviews
"As the frantic property market of last spring slumps into its current nervous state with falling prices, is it by chance that this crystal ball-gazing--so far--seems to be uncannily accurate, or does Harrison really know something we don't?" --"The Mail on Sunday"
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