Jump to content
House Price Crash Forum
Sign in to follow this  
Pent Up

Uk Housing Market Set For A Fall, Imf Warns

Recommended Posts

http://www.guardian.co.uk/business/2010/oct/06/uk-housing-market-set-for-fall-imf

The International Monetary Fund raised the prospect of a double dip in Britain's property market today when it said house prices were overvalued and vulnerable to a fall.

The fund, in its half-yearly World Economic Outlook, said it was "worrisome" that British property prices still remained so high and that tax breaks to encourage first-time buyers might not be enough to prevent a second leg to the downturn triggered by the financial crisis three years ago.

"In both the UK and the US, tax measures temporarily increased activity, but housing demand fell and prices receded after the recent expiry of these incentives," it said.

It came as a report by the UK's largest surveyor, e.surv, said that Britons faced renewed difficulty in getting a mortgage. It stated that credit conditions tightened sharply in September for mortgage borrowers buying homes, reversing months of steady improvement.

The IMF noted that there had been a dip in activity after the expiry in December 2009 of the stamp duty holiday on properties worth up to £175,000. This was replaced in Alistair Darling's March budget by a new two-year exemption for first-time home purchases up to £250,000.

The fund said the renewed policy initiative partly explained why the British market had so far held up better than real estate in the US, where activity has slumped since the tax break for home buying expired in the spring. Demand for mortgages in Britain has also slackened off since the start of the year and remains at 50% of the level seen during the pre-crash boom.

"What remains worrisome [about the UK], however, is that house prices are still high based on traditional valuation yardsticks, and policy support may not be enough to prevent further correction."

Let's hope for a nice figure from Halifax tomorrow morning.

Share this post


Link to post
Share on other sites

http://www.guardian.co.uk/business/2010/oct/06/uk-housing-market-set-for-fall-imf

Let's hope for a nice figure from Halifax tomorrow morning.

"What remains worrisome [about the UK], however, is that house prices are still high based on traditional valuation yardsticks, and policy support may not be enough to prevent further correction."

Contradiction, no?

Share this post


Link to post
Share on other sites

Sky News ticker now reading ...

"IMF warns Britain's property market could see a double dip recession".

...as the Nuliebour bubble support mechanisms are slowly rolled back e.g. mortgage support from 1st October reduced 50% ..a realistic adjustment is inevitable ....to call it 'double dip' is detached when the first dip was not really allowed to happen while Gordo was in power .... :rolleyes:

Share this post


Link to post
Share on other sites

"What remains worrisome [about the UK], however, is that house prices are still high based on traditional valuation yardsticks, and policy support - i.e. the propping up of the entire ponzi/pyramid scam by LIAR LOANS may not be enough to prevent further correction."

Edited by eric pebble

Share this post


Link to post
Share on other sites

I am really intrigued as to what is happening in the war of words between

A] the FEW sensible people at the FSA who have FINALLY woken up to the MASSIVE Ponzi/Pyramid Fraud-Scam a.k.a LIAR LOANS system that has rocket-fuelled and propped up unsustainable house "prices" for the last 15 years.... and

B] the complete ar$ehole "Council of Mortgage Fraudsters" [CMLF] who have orchestrated that scam.... - and are now screaming and crying like babies re: the threat of their LIAR LOANS SCAM being taken away.....

I suspect that somehow or other - the CMLF and VI's are going to threaten to start WW3 if they're not allowed to carry on peddling LIAR LOANS....

I tell you -- THIS IS THE KEY to the whole HPI Phenomenon.... It is the FUEL to the whole worldwide scam.....

:angry:

Edited by eric pebble

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 246 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%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.