1. Liddiard said...

This is the source material that is being reported on this morning. I always find the EA's comments interesting, my favourite this month is; Market Harborough - Leicestershire Andrew Kilburn King West "Continuing uncertainty in economy will continue to have an impact on a housing market which could have otherwise shown some signs of recovery."

Another amazingly misinformed statement!! In 2001 the UK had to borrow 6 billion I believe from overseas to finance our inflating housing bubble. By 2007 the UK I have read the UK had to borrow 750 billion from overseas. Article after article at the moment says that property prices are more affordable now than they have been in 6 years, but not affordable enough for most to buy a property at the still inflated house prices when loan are sensible and are about to regulated at 3.25 (median ) loan to income ratios that is one salary or 2.5 two salaries if that is higher. {Even people who feel they can afford more most can't when interest rates rise about 8% . Loan to income ratios worked for the UK for decades, and can anyone doubt that moving away from SENSIBLE loan to income ratios worked given that the UK economy collapsed trying to support an inflated market?) RECOVERY means going back to sensible lending, pre- the last decade of madness, and dealing with the awful catastrophic consequences of 5 million + in negative equity, and several decades before prices return to anything like 2007 levels, that is they will rise from here on in line with wages as THEY HAVE HISTORICALLY DONE prior to the madness. To think RECOVERY means returning to borrowing 750 billion a year from overseas and giving 125% LTV + 7 x's income surely IS madness. So Mr RICS "uncertainty" is not what is causing the market to fail to recover, but denial by the vast majority of the population with regards to what has been allowed to happen BUT WILL NOT BE ALLOWED TO HAPPEN AGAIN. When we start redefining "recovery" , house prices drop 40 - 50% and lending returns to sensible loan to income ratios we will be on the road to recovery, then all we have to deal with is a million + repossesions and 5 million + in negative equity ....in other words the repurcussions of the madness.