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redprince

Where Do You Think The Austerity Measures Will Leave Nominal Hp`s?

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At last the economic realities of GB`s public finances are coming to light.Once the real cuts start in earnest next year (2011) with

many tens of thousands if not several hundreds of thousands (yes i am being conservative) more on the dole : what impact will this have on hp`s?

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Edited by redprince

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At last the economic realities of GB`s public finances are coming to light.Once the real cuts start in earnest next year (2011) with

many tens of thousands if not several hundreds of thousands (yes i am being conservative) more on the dole : what impact will this have on hp`s?

Thank you for taking the time to vote.

Nominal or real?

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Nominal or real?

On all measures I have studied, current HP's are between 33 and 47% too highdepending on area etc. That is a comparison to todays price. What will happen in fact depends on inflation or deflation and real wages. If inflation takes hold then the nominal fall may be at the lowest end of the range or even slightly less. If deflation is in charge, it will be at the higher end of the range and prices may carry on dribbling downwards for years. The price of development land could collapse very sharply causing an initial jolt down. Do not buy shares in building companies; sell them!

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Trickier as it's nominal. I expect big asset value drops but I also expect chunky inflation for a few years so this is trying to tease out the net effect.

I went for 25% as I think the asset value drops will substantially outrun inflation.

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  • 142 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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