A property crash always unfolds in similar ways: credit runs dry, a priced-out majority stymies demand, confidence falters. Sound familiar? Then prepare for the bear, says Jonathan Compton.
A year ago, a small group of investors, including myself, approached investment banks with a substantial sum. We wanted to buy a short on any leading UK residential house-price index – in other words, we wanted to bet on house prices falling. We were prepared to accept adverse terms, as long as [...]