Tuesday, Nov 25, 2008
Government commissioned report predicts house prices will plummet
Citywire: Net new mortgage lending expected to fall below zero next year
New mortgage lending in the UK is set to evaporate next year as banks shy away from previous lending levels, a new report commissioned by the government has revealed.The Crosby Report, compiled by Sir James Crosby at the government's request, predicted that net new mortgage lending would fall below zero in 2009, down from £40 billion in 2008 and substantially lower than 2007's lending figure of £108 billion.
Posted by jack c @ 09:44 AM (394 views) Add Comment
3 Comments
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1. bystander said...
"predicted that net new mortgage lending would fall below zero in 2009, down from £40 billion in 2008 and substantially lower than 2007's lending figure of £108 billion."
...wierd eh! I would never have guessed that below zero was substantially less than 108bln. I am so glad that HMG is spending our taxes on such insightful reports. Couldn't Crosby have a guess at how far below zero it would fall? :0)
2. planning4acrash said...
Like I said, NO market by March, if current falls in transactions continue at the same velocity. I didn't bank on a negative, where people pay others to take a house from them! Is that what is meant by negative lending?
But seriously, this means, that from next year ALL HOME OWNERS on fixed or tracker rates that expire, they will ALL GO ONTO STANDARD VARIABLE RATE. Seriously glad that I don't own property, don't have debt and just own a couple of coins of the yellow stuff to my name. People have a go about gold ramping, but, if the media had have been at that, we'd be in a much better state right now.
3. planning4acrash said...
Actually, this is a good thing in the long run, so long as the parasites with bailout money don't buy everything up for the Communists that run our country before hpc'rs get a chance. If net mortgage lending is negative, what it means, is that more money is being paid off than is being borrowed. That's what we need, right?
During the Great Depression, you could buy a house in Chicago with a 1 ounce coin. I see that happening again. I quite fancy a little farmstead to see this thing through.