Tuesday, Aug 19, 2008
The housing industry cannot sustain current levels of trade
Wolsey Securities: Activity levels down over 60% from last housing market crash
Wolsey calls for Government action or face the consequences. While the Government continues to flounder on the sidelines, activity in the housing market has sunk to an unprecedented low level. Wolsey Securities is calling on the Government to take urgent action, as activity falls to a low level that even surpasses the slump during the last housing market crash. With the Bank of England figures showing that only 36,000* mortgage approvals were made in June, the number of housing transactions is currently set to total just over 400,000 this year. This low level represents over a 60% drop in activity on the worst year of the 1990s housing market crash, when transactions ran at around one million.
Posted by jack c @ 12:46 PM (921 views) Add Comment
7 Comments
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1. housebear said...
Mr Ratcliffe concluded: “However, because construction has ceased for some months, buyers entering the market at this time can do so with confidence that when activity returns to even a million transactions a year, property values will have risen. The next few months should be the time to buy.”
Presumably Mr. Ratcliffe also recommends investing in MAGIC BEANS and the water powered car!
What utter VI bu1l$h1t.
Just let the market correct it's self.
2. quiet guy said...
My preferred title for this would have been:
"Struggling housbuilder appeals for taxpayer subsidies by blackmailing the government"
It's quite a nasty piece of work really.
3. handle_it said...
Kinda odd that they should quote statistics that make their argument weaker ?
4. housebear said...
I think this mess could get so bad that even the Dave's lot will not want to win the next election.
They could let GB do all the necessary dirty work and get in the next time when the economy is on the up.
Just like Blair did to Major back in 97
5. icarus said...
The small number of transactions will lead to the loss of estate agency jobs, skills and mentoring capacity. The next generation of EAs will end up calling a spade a 'spade'.
6. it_is_going_with_a_bang said...
Just self interested rubbish.
Where in these articles to these people who apparantly have whats best for the nation actually mention anything about affordability?
All you ever hear is an obsession with property price increase.
Feed them to the Lions for all I care.
7. maddison said...
Any company that is in a cyclical business like housebuilding only have themselves to blame if they don't save for a rainy day. Tough Toots.. Cripes it was only 8 months ago that they were making stacks and stacks of money!