It’s our last market commentary of the year so we thought we would repeat last year’s attempt to be festive! Then we wrote - “as the end of another year hoves into view we learn that the politicians are meddling with the housing market yet again. The latest wheeze is a taxpayer guarantee for first time buyers who cannot afford a decent deposit. Hang on a minute! Didn’t prices become unaffordable due to lax lending and a massive credit bubble? Unpalatable though it may be the plain truth is that the market will not function properly until house prices become more affordable relative to incomes. With no sign of wage inflation this can only mean that prices have to soften over time. Will sanity return next year or will Tiny Tim have to scrimp and save until he is in his 40s to put together a deposit?” No change there then! A Merry Christmas one and all!