Housing bubble ready to return, says Bassi
Midlands property entrepreneur Paul Bassi has predicted another “housing bubble” within five years, citing billions of quantitative easing finance pumped into the economy, a rigid green belt and planning policy, a home-owning culture, cheap debt, a dearth of new house building and reasonable employment levels. Consequently, the chief executive of Real Estate Investors is looking to build up a residential land bank. “If we see excessive house price inflation, then it will pay us to develop that land. If it is only reasonable house price inflation, we may move on the land and take the planning gain.” Meanwhile, on the commercial property side, Bassi was scathing of the “amateurs and idiots” who came a cropper at the height of the boom and is critical of the banks for allowing them “to gamble with the banks’ money”. He said quality commercial property was still at premium prices because, with finance restrictions easing, there was more money chasing too little good stock. However, occupier demand was back and, as the banks looked to partner professional investors while also managing out distressed holdings, the opportunities would be there. “Equity will be king,” he stressed.
