Wednesday, 5 August 2009

2015 and the collapse of house prices.

If house prices are going up - enjoy it while you can because 2015 is going to be a significant year for house owners. About then the UK's energy generators start to close down due to age and energy supply drops by about 40%. The lights are sure to go out and the cost of energy will soar.

Because of the long lead times - about 10 years - for new power stations (particularly nuclear), we have no chance to avert this disaster.

Supply will be constrained by price from 2015 onwards.

At about the same time all new UK houses will need to be carbon neutral, so with high energy prices these will become highly desirable ...and expensive. However houses which are old (normally called quaint or characterful in Britain) and leak energy will become very cheap, just like in the early 70's when the oil crisis broke - you couldn't give away old rectories.

Think what the impending pincer movement on energy ie. restricted energy supply yet growing demand for energy neutral houses, will do to house prices for most of the existing stock.

Will they go down, or up? Go figure.

Any Interim Management energy experts out there who can help please - urgently!!

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