Wednesday, May 26, 2010
Rare piece of bear food
Daily Mail: Are we heading for a new housing crash?
Homebuyers could be battered by a credit clampdown next year if a £300 billion black hole in mortgage funding is not plugged.
Experts have warned that borrowers face higher interest rates, bigger fees, tougher credit scoring and a greater risk of being rejected. Loans to those with small deposits could be withdrawn or carry such high interest rates that they would become unaffordable.
All this could bring the recovery in the housing market to a shuddering halt and send prices crashing in parts of the country. Some economists predict a staggering 20 pc plunge in prices, wiping £34,000 off the average £167,802 home.
Posted by little professor @ 01:32 AM (1433 views) Add Comment
9 Comments
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1. gone-to-colombia said...
Yes
2. mr messy said...
heard this 3 years ago and still waiting house prices to crash
3. dude said...
'I find the market just insane,' says Gavin.
And indeed it is, Gavin. Indeed it is.
Gazumping should be outlawed. The building of flats should be significantly restricted, and more green field sites should be concreted over. After all, what matters more, affordable housing or the view of the Daily Mail readers?
4. wdbeast said...
I wouldn't call a 20% drop in prices "staggering" after the price inreases of the last 10 years, I would call it a start.
5. str 2007 said...
Is this the same papar that gleefully announced house prices were booming again the other day.
I think this headline is more realistic.
I've even been told by people (that aren't HPCers) that there's going to be a house price crash.
I think the population are ready for it, most anyway. And what might be surprising to the new government is that people will actually welcome it
.
Buying now at peak bubble rates seems unwise given the very poor state of finances here and abroad.
Obviously I hope the government doesn't try to artificially support prices any further, not just for my own benefit but for that of many.
The example in the article is a youngish couple struggling to get an averaged priced small family house. They both work, have a deposit and he's an accountant !
6. timmy t said...
str... "...people will actually welcome it"
Don't we have something like 70% home ownership in the UK? I reckon that's just 30% that would welcome it then.
7. holding out said...
Just because 70% of homes are owned doesn't mean that 70% people want high prices. There are people living in those owned houses who would welcome lower prices. Owners wishing to trade up would also welcome lower prices. Owners who wish to unload kids would also welcome lower prices. Hey and there might even be one or two who would like an economy based on doing something useful.
8. timmy t said...
holding out - I'm sure my maths isn't 100% accurate but I'm also sure you get my point.
9. str 2007 said...
timmy t
sorry for coming back so late to this.
Yes as holding out says.
It's only heavily indebted people in their last house that wouldn't benefit & maybe a few people about to inherit a house.
Most home owners don't have mortgages and aren't likely to borrow using there house for security.
To these people (unless they're about to downsize) they shouldn't really care whether their house is worth £450k or £250K.
It shouldn't really bother the heavily indebted in their last house either as they're not moving anywhere and one assumes they did their repayment calculations before they bought.