Wednesday, Mar 19, 2008
Ground breaking news!!!! NOT
Daily Mail: As lenders get tough, property prices look to drop 20 per cent in two years
House prices could fall by up to 20 per cent over the next two years, a senior economist warned yesterday.
The prediction, from Professor David Miles, chief UK economist at Morgan Stanley, will dismay millions of homeowners
Posted by titaniccaptain @ 10:19 AM (753 views) Add Comment
10 Comments
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1. japanese uncle said...
Still foresee 25% drop in 2008 alone, given this unprecedented volatility.
2. inbreda said...
I still hate the way VIs report rising house prices as positive news (good for homeowners) but not falling prices which would be good for FTBs.
"...will dismay millions of homeowners"
Screw 'em
3. Bobajobbob said...
Why will it dismay homeowners? I don't give a shit. In fact I welcome a crash as a homeowner because I am a responsible borrower. I am waiting for a crash so that I have a change to upgrade to something bigger and better.
Speculators and idiots who borrow beyond their means may be upset but people in that position should pay more attention to the markets if they are taking that sort of risk.
4. doomwatch said...
inbreda: ... and they fail to mention they are not actually home OWNERS. They are mugs (many on interest only mortgages) who are, in effect, renting
off the banks & building societies (the REAL owners), adding value but yet taking all the risk; only 3 missed payments away from a CCJ and reposession,
and will be chased for 16-20 years for the negative equity difference following a reposession.
5. mark wadsworth said...
20% sounds like a lot, but it's only reversing the gains of the last year or two in most areas. I'm with JU on this one.
6. shipbuilder said...
Prices in Northern Ireland are down probably about 10% in 6 months and EAs are getting desperate, advising a 20% cut to sell. 20% in 2 years is dreaming.
7. Notaneconomicsguru said...
Bobajob - I'm with you. I don't give a fig what they say my house is worth - its the increment to the next step of the ladder that is all that is important.
At the moment I am really pissed off with this credit nonsense because it looks like I may not be able to get such a good deal when my current tracker deal comes to and end in August. Why should I be made to pay more when I have been prudent and borrowed well within my means all of my life and have never taken a mortgage more than 2.75 times my gross? I didn't take part in this credit / house bubble madness and I don't see why I should pay to bale out the buffoons (indviduals and companies) that did.
8. dohousescrashinthewoods said...
20% is particularly significant because most BTL equity-cushion-below-market-value is 15%.
What's that coming over the hill? Is it a stampede of amateur landlords afraid of getting wiped out?
9. Dohousescrashinthewoods said...
Bobajob, Notaneconomicsguru, quite right - "buy low, sell high" as they say..
10. speculatorone said...
I can't see how estate agents can possibly slither their way out of this one now?
Once the banks go back to 3 x salary and demand a proper deposit that will do the first time buyer market....