Nick Churton of Mayfair Office shares his own Big Bang Theory and how it relates to the property market.
"Take millions of particles – let’s call them houses, and load them into a particle decelerator – let’s call it the Atlantic. At the other end of this tunnel get morally and financially bankrupt financial institutions to load up their own particles – let’s call them sub-prime mortgages.
Then run both sets of particles up to enormous speeds and smash them into each other. It was one of the greatest economic experiments, with other people’s money, of all time. Would the whole thing backfire? Would the result be a black hole into which all things disappear or would there be life after the big bang?
Well it did backfire but there was no extinction event. All the particles were very shaken up and, to a certain extent, continue to be so. But there is new life after the explosion. First to climb out of this newly-created soup seem to be investors. They recognise that hardening rents and softening house prices are having their own beneficial collision.
Then first time buyers will benefit from those correcting prices and from an easier mortgage environment. Also they will notice that rents are rising, making buying more attractive. Add some lowering of fuel prices and, while life may not return to how it was, a brand new life will evolve.
It is already evolving, helped by savvy sellers who understand about the basic building block of life in the property market – competitive pricing. People still need to buy and sell and those that are sensible to this are making the decisions that mean their lives will flourish after the big bang. Better still, this is the time to take advantage of so much choice in the market. After the experiment life, and the property market, goes on."