Crunch Is Ending Notw

[interestrateripoff]

http://www.newsoftheworld.co.uk/news/32364...dit-crunch.html

BRITAIN is finally heading out of recession, according to predictions from economic experts.

Analysts said HOUSE PRICES fell by less than one per cent in April-and they have not ruled out a small monthly rise.

Meanwhile BUYERS are coming back to the market-returning at the fastest rate in 10 years.

Banks have turned the lending taps back on with MORTGAGE APPROVALS rising.

And CONSUMER CONFIDENCE is up too, with shoppers finally prepared to go out and spend.

Brokers and bankers were yesterday starting to tear up their gloomy forecasts about the housing market-and now say the meltdown could be over by the end of the year.

Vicky Redwood, UK Economist at Capital Economics, said: "I expect to see a small 0.5 per cent drop in house prices this month, but we could see a rebound.

"The sharp falls in house prices are slowing. It is becoming increasingly clear that the worst for the UK economy is over."

The upbeat news will be boosted by figures on Wednesday showing banks are lending again. Mortgage approvals rose to 29,000 in April, according to statistics from the British Bankers Association. They are up from 26,097 in March-and up 62 per cent from the November low of 17,895.

Howard Archer, Chief Economist at analysts IHS Global Insight, said: "There is mounting evidence that house price activity has passed its low point and is picking up."

A spokesman for the Council of Mortgage Lenders said: "There is now a broad consensus that we are at least past the worst in terms of the rate of economic decline."

And home buyers are back. A report by the Royal Institute of Chartered Surveyors shows they are returning at the fastest rate since 1999. RICS chief economist Simon Rubinson said: "April was the sixth month in a row that buyer inquiries increased, and they rose at their fastest pace since August 1999."

Cheap mortgages and low interest-rates have also boosted the market. Last week Lloyds launched a new 95 per cent mortgage for first-time buyers, and low interest rates of just 0.5 per cent have helped make mortgages cheaper.

Lloyds, Britain's biggest lender, has scrapped its old forecast that house prices will drop by 15 per cent this year. Stephen Noakes, commercial director of mortgages at Lloyds, said: "For the first time people are thinking that house prices will increase over the next 12 months."

Mortgage guru Ray Boulger, of broker John Charcol, believes house prices will bounce back by three per cent by the end of the year, after bottoming out in a few months time.

He said: "There's been a marked change of mood."

Consumer confidence is increasing too and set to rise to a 13-month high, according to a monthly index by market research company GfK. The Confederation of British Industry's distributive trades survey for April is this week also expected to show consumer spending strengthening. But talk of an upturn comes as Britain ran a record deficit in April of £8.5billion. And consultancy PricewaterhouseCoopers warned that balancing the public finances will cost every British family £5,000 a year by 2018.

Ratings agency S&P switched its outlook from "stable" to "negative" and said there was a one-in-three chance Britain's AAA credit rating on its sovereign debt may be cut, raising the cost of borrowing.

And the IMF and CBI called for a credible plan to reduce the enormous budget deficit.

Excellent news.

One for Sibley and no flaws what so ever in this article.

The only way is up now baby.

I like how they saved the best till last.

I wonder how the negative types will find holes in this...

[Harry Sacks]

Bilderberg have made the decision to go ahead with the suckers rally before they pull the plug again.

[Son of Fred]

Analysts said HOUSE PRICES fell by less than one per cent in April-and they have not ruled out a small monthly rise.

Analysts = EA's

[sammysnake]

"Experts"

more like *****s

[Leonard Hatred]

Analysts = EA's

Yep - only they could report £1,400 a month being wiped off every house, during an alleged "spring bounce", as positive.

[clloyd]

Yep - only they could report £1,400 a month being wiped off every house, during an alleged "spring bounce", as positive.

Lets all buy houses they are only falling by as much as the average take home pay every month!

Bloody newspapers they really haven't got a clue, and to compound things most of the country believes them!

[Harry Sacks]

[Olebrum]

These are the same 'experts' who failed to see the massive debt fueled bubble being anything other than a good thing I suppose.

[Guest vicmac64]

The same failed experts I presume that told us there would be no crash I expect?

[wealthy]

Hahaha I can't stop laughing at this, houses only dropped less that 1% therefore we are almost out of recession.

[Sybil13]

http://www.newsoftheworld.co.uk/news/32364...dit-crunch.html

Excellent news.

One for Sibley and no flaws what so ever in this article.

The only way is up now baby.

I like how they saved the best till last.

I wonder how the negative types will find holes in this...

I like the British Bankers quote , mortgage approvals up to 29000!! March (Easter ) they fell nearly 7% back to 2001 lending levels. Does anyone have a BBA graph showing what their averages are like as they are obviously different to CML figures. Given that prices will not stabilise until approvals reach a modest 60000 - 70000, and during the last crash even when the approvals begain to rise prices continued to fall, I think there is a bit a of a way to go yet before ANYONE can speak of "green shoots."

Will keep quoting this stat now too until EVERYONE is bored of it, was shocked to read at weekend that last crash property went up 47% and fell 37%.

Taking the Nationwide’s figures, the 1997 to 2007 boom saw prices rise by 147 per cent in real terms.

And interest rates this time have only got one way to go .....and last time we did not have a mortgage lending gap of £200bn to fill due to the collapse of the RMBS market .

Edited May 25, 2009 by Sybil13

[laurejon]

Fantastic news and couldn't come at a more convenient time. I have to hand it to Gordon but coming out of the greatest recession so soon, and with such perfect timing, he is surely worthy of God like status ? For a man that has disaster spread about his Resume from day one, he has turned the nation around.

If the opposition could be just 10% of the metal that is Gordon Brown what a fantastic and proud nation we would be.

[THE BALD MAN]

You problem with this site is when the bears get humiliated they just vanish.

Think about all the big hitters who seem to have disappeared now.

This is the end of any HPC idea's. It didn't happen.

I'll grant you. Had things been left how they were there might possibly have been. Once the government got involved and started helping homeowners, lowing interest rates and QE the writing really was on the wall.

Without the above we might have seen mass repossessions like you wanted.

What you will see this year is pent up demand and easier lending pushing up prices.

I want to ask you bears honestly.

If it turns out that I was right all along. Will you have the guts to keep posting on here and admit it?

After all the stick I'd hate to miss you all getting bitter and twisted and planning anarchy in the UK.

I'm actually worried about some of you. I understand you really believe you're on the winning team and that £200,000 house you're after will be yours at £30,000 soon. What will happen when it goes back up to £200,000 again and you're priced out?

Samaritans?

Where is the recovery coming from ? Financial services?More debt? Please stop trying to ramp a ponzi scheme supported by discredited MPs to boost their property portfolios. House have fell by 30% already so this never happened?

[THE BALD MAN]

You problem with this site is when the bears get humiliated they just vanish.

Think about all the big hitters who seem to have disappeared now.

This is the end of any HPC idea's. It didn't happen.

I'll grant you. Had things been left how they were there might possibly have been. Once the government got involved and started helping homeowners, lowing interest rates and QE the writing really was on the wall.

Without the above we might have seen mass repossessions like you wanted.

What you will see this year is pent up demand and easier lending pushing up prices.

I want to ask you bears honestly.

If it turns out that I was right all along. Will you have the guts to keep posting on here and admit it?

After all the stick I'd hate to miss you all getting bitter and twisted and planning anarchy in the UK.

I'm actually worried about some of you. I understand you really believe you're on the winning team and that £200,000 house you're after will be yours at £30,000 soon. What will happen when it goes back up to £200,000 again and you're priced out?

Samaritans?

Did you read this?

But talk of an upturn comes as Britain ran a record deficit in April of £8.5billion. And consultancy PricewaterhouseCoopers warned that balancing the public finances will cost every British family £5,000 a year by 2018.

Ratings agency S&P switched its outlook from "stable" to "negative" and said there was a one-in-three chance Britain's AAA credit rating on its sovereign debt may be cut, raising the cost of borrowing.

And the IMF and CBI called for a credible plan to reduce the enormous budget deficit

Rose coloured spectacles worn by vested interest rampers.

[topcarrera]

Unfortunately 90% of the "politcal classes" and 95% of the "sheeple" have still not woken up to the fact that an economy cannot be sustained through activity in the housing and high street retail markets.

Quite simply unless we start to make and sell more products ourselves than we buy from overseas we are doomed. Forget the previous levels of revenue from "invisible exports", in future we will have to rely predominantly on tangible goods. The UK's unique "something for nothing" theory of national wealth creation has got to come to an end. We can choose to respond ourselves now or continue to deny our fragility and simply let global economic forces take their course. If we accept 10+ years of hard work and austerity we will survive. If we choose the retail therapy route to solve our problems then bankruptcy, poverty etc .. is a guaranteed outcome within a similar time frame.

During the week I heard an interview with a Lib Dem peer who was asked to comment on the potential weakness of the government's £2K car scrappage scheme, i.e. whether it risks simply supporting foreign manufacturers with little real value to the real fortunes of the UK economy. His answer was frightening. He quite passionately countered the concern for the UK vehicle manufacturing industry argument with a claim that we should have greater concern for the car dealership/retail business since this employed more people! What on earth!!!!!!! Herein lies the problem, very very few of our leaders, financial/economic commentators have a grasp of the glaringly obvious.

I think we are probably quite close to the bottom of this recession. Recovery on the other hand is another matter. Everyone talks of a recovery as a matter of fact not IF. There is a very real risk of a dangerous housing/retail lead pseudo recovery within the next 18 months. Inevitably this would be very short-lived but the after-effects of any such mini-boom could prove to be fatal.

God help us!

[THE BALD MAN]

What you won't like is the fact that the NOTW reaches out to a lot of people.

Every homeowner who read that won't knock 10 pence of their asking price now. That paper really has done the business.

Then when they see thye are unemployed and their pay is reducing they might think again..Get real..the UK has structural debt problems that a few months of pumping up the ponzi scheme wont fix

[self]

Get real guys, we have the largest bubble in history and we only have a 6 month recession? Give me a break.

[Unexpected]

I'm actually worried about some of you. I understand you really believe you're on the winning team and that £200,000 house you're after will be yours at £30,000 soon. What will happen when it goes back up to £200,000 again and you're priced out?

If you weren't such a tit you would have said £150k instead of £30K.

But that might be a little too close to the truth for your likeing

[Chest Rockwell]

This is the end of any HPC idea's. It didn't happen.

Yes it did, and it's still happening now!

No jobs, rising unemployment and deserted building sites with half bulit houses and flats says otherwise!

[pokercola]

Yeah I have heard that we are coming out of recession as well!

Well done the super labour government! Of course they are not using the old tory definitions of recession, so the fact that we still have a shrinking GDP and rising unemployment is fine! Apparently, recession is now measured on HPI!?!?!

[Harry Monk]

If it turns out that I was right all along. Will you have the guts to keep posting on here and admit it?

What, that house prices haven't fallen by 20% since 2007? Sure, I'll be the first to admit it.

Meanwhile I will continue to harvest your hilarious predictions for use in my signature, simply to poke fun at an estate agent.

[geezer466]

What you won't like is the fact that the NOTW reaches out to a lot of people.

Every homeowner who read that won't knock 10 pence of their asking price now. That paper really has done the business.

So what homeowners don't drop their asking and buyers don't up their offer. We are simply back to impasse.

All the while we are edging closer and closer to interest rate rises which for many will be the last straw, then we will see real capitulation..... These will come a lot sooner than people think the standard and poor announcement this week is testament to that, the ground is already being prepared.......

You believe the NOTW if you want to as far as I am concerned they spout almost as much crap as that other rag that photographed a US bomber on the moon...

I will be looking at underlying data such as unemployment figures and CML stuff for the true picture..........

[GrahamL]

What, that house prices haven't fallen by 20% since 2007? Sure, I'll be the first to admit it.

Meanwhile I will continue to harvest your hilarious predictions for use in my signature, simply to poke fun at an estate agent.

You definitely have the best signature going!

[topcarrera]

What will happen when it goes back up to £200,000 again and you're priced out?

Given that the only thing this country will be able to manufacture very soon is government BS then as the economy starts to disintegrate, hyper-inflation kicks in and Sterling crashes then your notional £200K figure seems quite conservative to me. £200K for a modest box of a house, £10 for a loaf of bread etc .........

[GrahamL]

You problem with this site is when the bears get humiliated they just vanish.

Think about all the big hitters who seem to have disappeared now.

This is the end of any HPC idea's. It didn't happen.

I'll grant you. Had things been left how they were there might possibly have been. Once the government got involved and started helping homeowners, lowing interest rates and QE the writing really was on the wall.[/b]

Without the above we might have seen mass repossessions like you wanted.

What you will see this year is pent up demand and easier lending pushing up prices.

I want to ask you bears honestly.

If it turns out that I was right all along. Will you have the guts to keep posting on here and admit it?

After all the stick I'd hate to miss you all getting bitter and twisted and planning anarchy in the UK.

I'm actually worried about some of you. I understand you really believe you're on the winning team and that £200,000 house you're after will be yours at £30,000 soon. What will happen when it goes back up to £200,000 again and you're priced out?

Samaritans?

You're getting yourself in a muddle! Interest rate rise = complete annihilation of housing market. We all know it and so do you! Rates are lowest for 300 years and it's still fooked!!!!!