Friday, Nov 28, 2008
Prices to fall 30% says FT
FT: Investors bet on record property crash
"... They also suggest that the housing market will not return to today’s level of pricing for another 10 years."
"Modern flats in northern cities such as Leeds, for example, are already being sold at discounts of more than 50 per cent to their newbuild value two years ago."
"The agent predicts that it will take around eight and a half years – until 2016 – for prices to recover to 2007 peak levels."
Posted by voiceofreason @ 10:02 PM (700 views) Add Comment
6 Comments
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1. dohousescrashinthewoods said...
And so they bally well should. At last people are starting to bet on the obvious outcome rather than hubristic optimism.
2. Stillthinking said...
Great. If I start saving now I can still make the bottom !
3. waiting patiently said...
I hate to say it, but I believe that NULabours Pre Budget Report may have put an artificially high floor under the market. A three month moratorium on banks commencing repossessions coupled with the Welfare State paying the interest on upto a £200K loan (doubled from £100K) three months after loosing a job has bailed all but the BTL's out. Forced selling will be dramatically reduced whilst reckless borrowing has been rewarded and Moral Hazard is back with vengeance. Why bother with payment protection insurance when the state will pick up the tab and banks will inevitably amend the mortgage terms to Interest Only.
4. Yorkshire_lad said...
Thing is, if you lose your job and you cant pay, you will lose the house interest only or not.
Most banks take 3 months to get things in motion for a repo anyway. For a couple of months you can fob them off with promises of payment or slamming the payments on your CC. During the 3rd month theyll be after you as you'll have run out of options.
5. jonb said...
This state help is for owner occupiers, not BTL landlords. I'm not sure that BTL landlords are entitled to any sort of benefits at all.
What helps BTL landlords is Local Housing Allowance for their tenants, and I've seen reports elsewhere that the government are looking to reduce rates for it, as it is costing them too much.
6. waiting patiently said...
Jonb - I agree and that is what I said. It is not just the landlords which have bought into the hype / boom though.
Re the Local Housing Allowance, it may be too high, but even at the current levels it is unlikely to cover interest on a mortgaged property.