Thursday, Jun 26, 2008
"Adjustment" is more severe than in the 1990s
London Evening Standard: Builders on slide after 'worse than Nineties' warning
"Kate Barker, who is the Bank's monetary policy committee's lead expert on housing, said: "I don't think it's particularly good news. Conditions are different to the 1990s. The housing market adjustment is more severe than in the 1990s"
Posted by doomwatch @ 10:09 PM (352 views) Add Comment
3 Comments
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1. confused76 said...
http://www.thisislondon.co.uk/standard-business/article-23500666-details/Builders+on+slide+after+%27worse+than+Nineties%27+warning/article.do
"I don't think it's particularly good news. Conditions are different to the 1990s. The housing market adjustment is more severe than in the 1990s, because it looks as though the fall in house construction this year may be on a scale that it took almost six years to achieve in the 1990s."
Fellow MPC member Tim Besley said falling house prices had put an end to the buy-to-let market and it was "unlikely to begin again anytime soon". Shares in building firms had already taken a knock today after broker Credit Suisse told its clients once again to "avoid the UK housing sector".
An end to the bTL market.... UHUHUHUHUHUHUHHUHUHUHUHUHHUHUHUHUHUHUHUHUHUH
2. crash bandicoot said...
"Fellow MPC member Tim Besley said falling house prices had put an end to the buy-to-let market and it was "unlikely to begin again anytime soon"
Forgive me for breaking ranks but surely a fall in house prices is is exactly what is needed to rejuvinate the BTL market. It's no wonder we're in the mess that we are if this is the limit of their understanding.
Back on message, Kate Barker's proclamations make a mockery of the "it's not as bad as last time" brigade. It's worse than last time already and we don't even have double-digit interest rates yet.
This also blows the supply and demand argument out of the water, how long will it take for the government to drop their building targets?
3. Worried said...
"because it looks as though the fall in house construction this year may be on a scale that it took almost six years to achieve in the 1990s."
wow