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The Masked Tulip

House Prices Face A 'double Dip With No Recovery For Five Years'

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The housing market is heading for a double dip and will take five years to recover, a leading economist has claimed.

Peter Spencer, chief economic adviser with leading financial forecasters Ernst & Young Item Club, said property values would fall by 5 per cent over the next 12 months.

The predictions are based on the Treasury’s own forecasting models.

And Mr Spencer claims the housing market will remain depressed for years to come because banks are refusing to offer affordable loans to first-time buyers.

He said: ‘We have been very bearish on the housing market for some time. Demand from first time buyers is drying up because there are only so many that can call on “the bank of mum and dad” for a large deposit.

‘What really matters for the housing market is the number of people who can get a decent 80 per cent or 90 per cent mortgage.’

Mr Spencer added that young people were opting not to even try to step onto the property ladder because of the high costs involved.

‘My generation has been planning to sell our houses at over-inflated prices to our children – but many of them are not interested. The game has changed.’

Mr Spencer said that price increases earlier this year were due to a shortage of houses on the market, but that these had encouraged more people to try to sell their home.

He added that property values had also been buoyed by cash buyers who did not need to raise a mortgage, but said: ‘There are only a finite number of those.’

Read more: http://www.dailymail.co.uk/news/article-1321381/House-prices-face-double-dip-recovery-years.html#ixzz12ejPr2g8

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well no one saw that one coming did they :rolleyes: and suprize suprize people are puting prices up now i wonder whos telling them to do that ????????????????? I looked at a repo flat last week avertised as a two bedroom when we got there it was a 1 bedroom and a hallway not 3 foot wide whitch the last people used as a bedroom where the door to the garden was anyway not being the ea biggest fan at the best of times i let the little tit have it and he tried to blame the lender who repod it saying that they said it had to be avertised as a two bedroom!! he must think im as stupid as he is lol anyway its good to see them getting desperate i was in town today waiting for the missis looking in the window of an ea and they actully came out and asked if they help me and i said yes lower your prices down to reality as you are obvisly deserate and he went back in looking upset he new what i ment :) and this is in west sussex where aprantly prices havent dropped its true they are still the same price just no one is buying them. 2 ea gone in town already hopefully loads more to follow after all they are only a wart on face of britain left over from the days of easy money

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well no one saw that one coming did they :rolleyes: and suprize suprize people are puting prices up now i wonder whos telling them to do that ????????????????? I looked at a repo flat last week avertised as a two bedroom when we got there it was a 1 bedroom and a hallway not 3 foot wide whitch the last people used as a bedroom where the door to the garden was anyway not being the ea biggest fan at the best of times i let the little tit have it and he tried to blame the lender who repod it saying that they said it had to be avertised as a two bedroom!! he must think im as stupid as he is lol anyway its good to see them getting desperate i was in town today waiting for the missis looking in the window of an ea and they actully came out and asked if they help me and i said yes lower your prices down to reality as you are obvisly deserate and he went back in looking upset he new what i ment :) and this is in west sussex where aprantly prices havent dropped its true they are still the same price just no one is buying them. 2 ea gone in town already hopefully loads more to follow after all they are only a wart on face of britain left over from the days of easy money

A couple of Eas in my part of the world that had begun opening on Sundays again weren't open today :)

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And Mr Spencer claims the housing market will remain depressed for years to come because banks are refusing to offer affordable loans to first-time buyers.

Phew! For a minute I thought the problem might have been that houses were too expensive, but it's just the banks refusing to give 7-10 times salary loans <_< Those nasty banks refusing to give people ludicrous amounts of credit in the biggest depression since the 1930s. :rolleyes:

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And Mr Spencer claims the housing market will remain depressed for years to come because banks are refusing to offer affordable loans to first-time buyers.

Actually they are ONLY lending affordable loans now. Is that a bad thing? Nob!

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Actually they are ONLY lending affordable loans now. Is that a bad thing? Nob!

+1 - Laughable

It's a problem for the feckless and shysters that the banks are not lending irresponsibly

bring it on

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"And Mr Spencer claims the housing market will remain depressed for years to come because banks are refusing to offer affordable loans to first-time buyers."

Perhaps Mr Spencer could persuade the banks to offer me an affordable loan for a private Island in the Bahamas.

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‘My generation has been planning to sell our houses at over-inflated prices to our children – but many of them are not interested. The game has changed.’

Oh, I bet that truth hurts!

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yes, i have always wondered why even the most bearish house price forecasts say prices will take as short a time as 4 or 5 years to recover........

...how about 20 years?

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A couple of Eas in my part of the world that had begun opening on Sundays again weren't open today :)

could this be turning into another one of those 'really mundane' threads? :)

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yes, i have always wondered why even the most bearish house price forecasts say prices will take as short a time as 4 or 5 years to recover........

...how about 20 years?

+1

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  • 259 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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