Monday, Jul 16, 2007
So it is a credit bubble, if lenders can see through it!
Times: Lenders predict UK property crunch as rates take effect
Lenders are in the best position to predict when this bubble will deflate, since they have inflated it. "Higher interest rates are set to provoke a crunch in Britain’s property market next year with the weakest growth in prices for 13 years, the Council of Mortgage Lenders (CML) said yesterday." I feel sorry for all landlords, honestly.
Posted by confused76 @ 10:30 PM (163 views) Add Comment
5 Comments
- If you do not have an admin password leave the password field blank.
- If you would like to request a password allowing you to add comments and blog news articles without needing each one approved manually, send an e-mail to the webmaster.
- Your email address is required so we can verify that the comment is genuine. It will not be posted anywhere on the site, will be stored confidentially by us and never given out to any third party.
- Please note that any viewpoints published here as comments are user's views and not the views of HousePriceCrash.co.uk.
- Please adhere to the Guidelines
1. confused76 said...
These people have the data on mortgage applications covering the next few months of house sales. If they are saying this I believe them, does not matter what other sources may say:
"The slowdown predicted by the CML would give the property market its worst year since 1995 and would probably mean a real-terms cut in the value of most people’s homes."
up to now, i had not read anything so direct in the press, yet
2. planning4acrash said...
And, unlike in 1995, BOE doesn't have the option of cutting interest rates.
3. Bobthe~ said...
I think they are trying to do 2 things.
Firstly scare the BoE into cutting rates or at least not raise them any further.
Secondly, position themselves to blame the govt if/when a crash does happen. They will say, "We knew there was a big risk of a crash but didn't want to panic the market by saying so explicitly". They will come up against a lot of flak when prices drop, as their members will be the ones foreclosing on families and being questioned about their irresponsible lending practices of the past 5+ years. It is these policies that have fuelled this bubble after all.
4. paul said...
So the CML is now shouting "There's going to be no property crash! No there isn't!"
Methinks she doth protest too much.
5. Scott said...
The weakest growth in 13 years is still a growth! Agreed that not all regions of the UK are looking so good.