Jump to content
House Price Crash Forum
Pent Up

Uk House Prices Set To Plunge Next Year

Recommended Posts

http://www.express.co.uk/posts/view/219424/UK-house-prices-set-to-plunge-next-year

UK HOUSE PRICES SET TO PLUNGE NEXT YEAR

House prices could fall by up to 7 per cent in 2011

Sunday December 26,2010

By Sunday Express Reporter

Have your say(1)

HOUSE prices could fall by up to 7 per cent in 2011, economists believe.

Howard Archer, chief UK economist at IHS Global Insight said: “While we do not expect house prices to crash, we do expect them to gradually lose about 10 per cent from their peak 2010 levels by the end of 2011. This implies that house prices are likely to fall by a further 6 to 7 per cent during 2011.”

He put his gloomy prediction down to rising unemployment, moderate wage growth, increasing fiscal squeeze, low consumer confidence and difficulties getting mortgages.

He added: “Much will depend on mortgage availability, the amount of houses coming onto the market and how well the economy holds up as the fiscal squeeze increasingly kicks in.”

The gradual slide in prices is likely to be confirmed on December 31, when the Nationwide is expected to report that house prices fell by a further 0.5 per cent month-on-month in December, after a 0.3 per cent drop in November.

The Bank of England is predicted to report on January 4 that mortgage approvals for property purchases were stable at 47,000 in November compared with a total of 47,185 for October.

However, this figure is substantially less than the 70,000 to 80,000 level that is considered consistent with stable house prices.

Nothing new in the article just the forecasts we've already seen. But a surprisingly bearish article from the Express!

Sibley got in early:

DON'T SELL JUST WAIT........

26.12.10, 8:38am

Why would anyone want to sell their house in a bad market? For what reason?

With interest rates so low it makes sense to stay put and wait until prices rise. These articles try to give the impression that every house will be for sale next year when in fact sellers will sit tight. Only houses actually on the market will drop in price. Most people will just enjoy a cheaper mortgage payment. No need to even think about house prices for the majority of homeowners. We saw prices fall in the 90's only to double in the future. Nobody will fall into that trap again. A house is the best investment you will ever have. Sit tight.

• Posted by: Sibley • Report Comment

Share this post


Link to post
Share on other sites

"Only houses actually on the market will drop in price"

:blink:

I have 10 year old VW. It has not been 'on the market' for the last 4 years. So whilst other similar cars are worth 2k today mine is still actually worth 5k.

Delusion.

Share this post


Link to post
Share on other sites

"Only houses actually on the market will drop in price"

:blink:

I have 10 year old VW. It has not been 'on the market' for the last 4 years. So whilst other similar cars are worth 2k today mine is still actually worth 5k.

Delusion.

Brilliant. You should add that to the commets.

Share this post


Link to post
Share on other sites

If Sibley's speaking to people who bought a house as a home to live in and are presently secure in their jobs, in a way he's right. Somehow I don't think he's got that audience in mind when he's writing though...

Share this post


Link to post
Share on other sites

most houses on the market are not from people needing to sit tight.

and with "Osterity" coming, one of the many benefits to go will be the very generous Mortgage relief. this will see a few more "needing" to sell and cant sit tight, and possessions in negative equity....some people keep their mortgages through bankruptcy due to an ability to keep a job and keep up repayments...SMI and joblessness will put paid to this bankruptcy avoidance scam.

Share this post


Link to post
Share on other sites

Sibley gets banned off here because he was posting things that didn't tow the hpc party line and yet every time he posts somewhere else his post gets copy and pasted on here.

He must be laughing in his Maidstone mansion at how simple most on here are.

Edited by headrow

Share this post


Link to post
Share on other sites

Sibley gets banned off here because he was posting things that didn't tow the hpc party line and yet every time he posts somewhere else his post gets copy and pasted on here.

He must be laughing in his Maidstone mansion at how simple most on here are.

Nah IIRC Sibley lost his job and quit the UK living in Thailand as an ESL type.

Share this post


Link to post
Share on other sites

Is the Express capitulating?

This is the second such article in a few days in the Express newspapers. And coupled with the "Great news, shares are rocketing" story a couple of days back, it is fairly clear that the Express bosses have finally dropped their BTL portfolios...

Anyone able to confirm this? In whatever case, it is good news when the tabloids are on out side...

Share this post


Link to post
Share on other sites

If Sibley's speaking to people who bought a house as a home to live in and are presently secure in their jobs, in a way he's right. Somehow I don't think he's got that audience in mind when he's writing though...

Rates will still rise, their home price will still drop, it just that these people will just live with NE rather than being repo`d.

Share this post


Link to post
Share on other sites

Sibley gets banned off here because he was posting things that didn't tow the hpc party line and yet every time he posts somewhere else his post gets copy and pasted on here.

He must be laughing in his Maidstone mansion at how simple most on here are.

He shouldn't have been banned, imo. He was quite amusing.

Share this post


Link to post
Share on other sites

What so he teaches English abroad you think?

nah, he's running a property advice firm called siblez

Share this post


Link to post
Share on other sites

If Sibley's speaking to people who bought a house as a home to live in and are presently secure in their jobs, in a way he's right. Somehow I don't think he's got that audience in mind when he's writing though...

Yes, providing they don't need to move or remortage for the next 10 - 20 years, they can keep telling themselves their houses are worth 2007 prices until they actually are.

Share this post


Link to post
Share on other sites
"We have now had at least 4 different price drop figures from these predicting "experts" and now we have amateurs posting entirely unsupported opinions on here as well.......

We bought our present home for £39,950 in 1983. Its current value is £390,000. The same kind of value increases will occur with houses purchased today

• Posted by: TrevorD • Report Comment"

There, you've been told, Trevors house will be 3.9million by 2027, strange because it was 33% more than the average house in 1983, it's now 136% above average, must have twigs in every room.

UK Average salary in 1983 = £7,700

Today = £25,800

So to continue that 17 year x3.35 increase will see wages at £86,430 making Trevors house just 45 times average salary. He should have mentioned this to support his opinion.

Edited by athom

Share this post


Link to post
Share on other sites

Brilliant. You should add that to the commets.

It would make me feel dirty to post there. :ph34r:

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...

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 276 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.