Friday, Feb 29, 2008
Well if BoE say it, then it must be right...
Telegraph: UK house prices drop for fourth straight month
''..There is currently an unprecedented amount of uncertainty about future economic conditions, but if the Bank of England's central projection that the economy continues to grow is correct, conditions for the UK housing market are perhaps less gloomy than some would have us believe...''
Posted by hpwatcher @ 08:04 AM (1024 views) Add Comment
16 Comments
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1. it_is_going_with_a_bang said...
It's a classic chicken and egg situation. House Prices being portrayed as robust because of strong growth, when quite possibly there has only been strong growth because of rampant house price inflation.
As the US has already shown.
2. mark said...
they still try and talk it up, prices are at least 30% overpriced in the UK........ so I am sure we can expect drops like in the satets....
If there was strong growth why is BMW laying off 6500 staff??????
IT follows the age old pattern. of cutting back
Luxury items, cars/horses/boats, non essential items, food bills, mortgages once the last stage is hit then most people lose their house...
3. alan said...
The article seems to be quoting Fionnuala Earley, Nationwide's Chief Economist, not BoE.
If house sales fall and prices drop back, expect to see less folk shopping in B&Q, Homebase etc...
4. hpwatcher said...
I don't care what anyone says, I think the country is going into recession.
Everyday, I am hearing more and more stories about people being made redundant, and cut backs.
There are 4,000,000 million on benefits.....
5. Cstanhope707 said...
Th UK economy still has sound fundamentals!!!! Anyway BOE will cut IR's by 2% this year still predict 10% HPI this year.
6. fahrenheit451 said...
They need to clarify:
1) Is this seasonally adjusted ?
2) If not then please specify what is the offset from the current figures for each month that should be applied.
Anyone noticed if the rents are rising ?
Basically, the new lending criteria (min 10% deposit, etc) will stop first time buyers moving out of the rented sector.
We are predicting a good 5% increase in the cost of renting ???
7. techieman said...
hpwatcher you are getting carried away 4 trillion on benefits??.... i know sorry nobody likes a smart ar@e!
Seriously though I agree I find it astonishing how many people think that things are not as gloomy as they are and that something nasty isnt happening.
8. fahrenheit451 said...
Er sorry, that should be a BAD 5% increase in rents !!!
9. theboltonfury said...
with the amount of rental alternatives on the market due to desperate BTLers, I do not see how rents can be rising, surely there is massive competition - even if it's just for a place for FTB's to save. They're beginning to come down in Manchester
10. fahrenheit451 said...
Unfortunately, we're in the London catchment area.
Trying to avoid an upward rent review, but proving difficult.
11. hpwatcher said...
hpwatcher you are getting carried away 4 trillion on benefits??.... i know sorry nobody likes a smart ar@e!
Hmmmmmm I was wondering who would take me to task on that!
Actually 4 trillion is probably closer to the forecast price for a nice flat in Chelsea for 2018.......
12. shipbuilder said...
You can just cut and paste this article for the next 6 months - "prices are down, but things are not as gloomy as some whould have us believe......."
Of course the doomsayers will always have predicted more doom than is actually happening, until the crash is undeniable, at which point they will say "well the doomsayers were always going to be right EVENTUALLY....."
13. shipbuilder said...
"Fionnuala Earley, Nationwide's Chief Economist, said that while the house price inflation in recent times was clearly over, the UK housing market was unlikely to follow the US, where house prices fell 10pc in 2007."
Except that if you extrapolate the current level of decline (the favoured method of prediction for housing 'experts'), that's EXACTLY what you get.
Repeating it won't make it happen.
14. disillusioned said...
Cstanhope707 - "Th UK economy still has sound fundamentals!!!! Anyway BOE will cut IR's by 2% this year still predict 10% HPI this year."
Do you actually know what this means, or are you just repeating what you heard Darling or Brown say?!
15. crash bandicoot said...
"Fionnuala Earley, Nationwide's Chief Economist, said that while the house price inflation in recent times was clearly over, the UK housing market was unlikely to follow the US, where house prices fell 10pc in 2007."
You guys have missed what she really means. Price falls will be far greater than 10% in the comming year. Source - Nationwide.
16. Utterlee said...
I've just had to move house in London. Whilst driving us to a flat one of the Estate Agents told us that lettings had gone absolutely mad because sales have almost totally stopped. He reckons rents are up 10% because of it. Obviously I wasn't best pleased...