Agree 100% with Ian Andrew's comments.
"We have reduced the prices of our small (300) inventory of .co.uk names by 50% across the board. The proposal is absurd and if implemented will cause widespread uncertainty for UK businesses using .co.uk and confusion for the public. In my opinion this consumer confusion will significantly strengthen the use of the established brand of dotcom for building businesses in the UK," Andrew predicted.
We've made similar reductions in prices and our sales have plummeted in the last 3 months. Unlike Nominet (who've been on the radio today promoting agreatplacetobe.co.uk), we have, since October 1st, been putting potential buyers on notice about the consultation and it's clear that a lot of buyers then lose interest, or want further reductions. We have made some sales and fortunately have some reserves - Nominet do say they will continue to run .co.uk even if direct.uk is launched - and I think it will pick up again - but Nominet have done their best to ruin a successful extension. We've also started developing domains but, as Ian Andrew says, we've tended to look at our .com portfolio for this. .com will be the beneficiary even if .uk is launched. A lot of buyers will also be put off .uk because they cannot get the .co.uk. So they'll just go for the .com.