Thursday, Sep 09, 2010
A pretty blunt warning
Guardian: Standard & Poor's warns of wave of house repossessions
The government's planned spending cuts and tax rises could trigger a fresh wave of house repossessions as hard-pressed borrowers find it impossible to meet their mortgage payments, the ratings agency Standard & Poor's said today. In a downbeat assessment of the UK property market, S&P stressed that house prices remained overvalued and many families were vulnerable to George Osborne's budgetary squeeze.
Posted by quiet guy @ 10:37 PM (916 views) Add Comment
5 Comments
- If you do not have an admin password leave the password field blank.
- If you would like to request a password allowing you to add comments and blog news articles without needing each one approved manually, send an e-mail to the webmaster.
- Your email address is required so we can verify that the comment is genuine. It will not be posted anywhere on the site, will be stored confidentially by us and never given out to any third party.
- Please note that any viewpoints published here as comments are user's views and not the views of HousePriceCrash.co.uk.
- Please adhere to the Guidelines
1. taffee said...
wow...based on AFFORDABILITY first time buyers have to pay 25% above the long term average
holy cow!
2. monty032 said...
As the article states, affordability is still above the long-term average. This is not how bubbles burst - ever. Either you believe that things really are different this time, and we have reached a permanently high plateau, or it's just a matter of time before the second and much larger fall in prices begins.
3. mark said...
nothing to do with job losses from poxy companies then
4. quiet guy said...
Mark,
I detect a little pique about my comment on one of your posts yesterday (OK, maybe the tone of my comment was a little harsh.)
Regarding your question, I expect that the majority of job losses will be in the public sector (i.e. not companies) due to government cutbacks but there will also be some losses in the private sector as a side effect. Private sector business closures are the symptom not the cause and some of those businesses probably need to be shut down because they are not viable in today's financial climate. Standard & Poor have focused on macroeconomics rather than individual cases.
5. drewster said...
quiet guy,
Sorry to jump in on your conversation. I haven't read Mark's comments on job losses, but from what I'm seeing, much of the private sector is heavily reliant on government spending too. There are a lot of private companies undertaking what we traditionally think of as government work - e.g. maintaining roads and railways, delivering certain healthcare services, construction of new schools and hospitals, managing IT systems for large government departments like HMRC, and much more. It's actually quite easy to cut those back, since they are less likely to be unionised than civil servants or town hall staff.