Jump to content
House Price Crash Forum
Sign in to follow this  
Shotoflight

Daily Telegraph - House Price Crash

Recommended Posts

I urge you to read this article. Most of it could apply to Northern Ireland. The situation has many parallels and was/is perhaps worse here.

This is the kind of realistic journalism the Belfast Telegraph (owner of Property News) could only aspire to.

http://www.telegraph.co.uk/finance/comment/jeremy-warner/8464483/The-other-housing-market-where-house-prices-have-regressed-60pc.html

"Over a seven year period, prices for a typical two to three bed house or flat were chased all the way up from the low teens to well in excess of £60,000. New build subject to mortgage fraud would fetch £125,000 or more. Today you'd be lucky to get half. Prices are fast regressing all the way back to where they came from before the bubble began.

Typical of this phenomenon is Benwell, located on the hillside that tumbles down to the Tyne in Newcastle's West end. A scene of grim degradation, it stands as a lasting reminder of the policy failures and illusory prosperity of Brown's Britain. Pumped up on a sea of credit, make work public expenditure and benefit payments, prices rocketed from 2000 onwards.

First came the local money, chasing the apparently mouth watering yields that housing benefit could offer to buy-to-let landlords. Then having exhausted the possibilities down south, in came the London investors. In the final hurrah came the Irish, their pockets overflowing with loans from their now hopelessly bust banking system.

Many of these investors will already be in substantial negative equity, but still they refuse to adjust their price expectations to the all too dire reality. So they hold on in the hope they can find the tenants to pay the mortgage and that prices will eventually recover. Denial is the order of the day. "

Sentiment continues to face reality.

Share this post


Link to post
Share on other sites

I urge you to read this article. Most of it could apply to Northern Ireland. The situation has many parallels and was/is perhaps worse here.

This is the kind of realistic journalism the Belfast Telegraph (owner of Property News) could only aspire to.

http://www.telegraph.co.uk/finance/comment/jeremy-warner/8464483/The-other-housing-market-where-house-prices-have-regressed-60pc.html

"Over a seven year period, prices for a typical two to three bed house or flat were chased all the way up from the low teens to well in excess of £60,000. New build subject to mortgage fraud would fetch £125,000 or more. Today you'd be lucky to get half. Prices are fast regressing all the way back to where they came from before the bubble began.

Typical of this phenomenon is Benwell, located on the hillside that tumbles down to the Tyne in Newcastle's West end. A scene of grim degradation, it stands as a lasting reminder of the policy failures and illusory prosperity of Brown's Britain. Pumped up on a sea of credit, make work public expenditure and benefit payments, prices rocketed from 2000 onwards.

First came the local money, chasing the apparently mouth watering yields that housing benefit could offer to buy-to-let landlords. Then having exhausted the possibilities down south, in came the London investors. In the final hurrah came the Irish, their pockets overflowing with loans from their now hopelessly bust banking system.

Many of these investors will already be in substantial negative equity, but still they refuse to adjust their price expectations to the all too dire reality. So they hold on in the hope they can find the tenants to pay the mortgage and that prices will eventually recover. Denial is the order of the day. "

Sentiment continues to face reality.

Yes, was thinking exactly the same as I read it.

Share this post


Link to post
Share on other sites

Interesting comment on the error of the redevelopment policies.

You should look at the Pathfinder scheme in Oldham. People should be sent to prison for what they've done. People in their fifties & sixties who had paid off their mortgages having perfectly good homes CPO'd. Unable to get new mortgages because they're unemployed and also because they are in their fifties. Losing their benefits because the CPO money lifts them above the threshold - likewise with pension credits, unable to get private rented accommodation because they have no job and landlords don't want HB tenants.

The whole thing is a disgrace. They've emptied out whole housing estates and boarded them up, vandals burning them, druggies using them as dens. And then cancelled it.

Share this post


Link to post
Share on other sites

Many of these investors will already be in substantial negative equity, but still they refuse to adjust their price expectations to the all too dire reality. So they hold on in the hope they can find the tenants to pay the mortgage and that prices will eventually recover. Denial is the order of the day. "

This is key IMO. There have been numerous threads calling the start of the fear phase, even the beginning of capitulation. I actually think we are still firmly in the denial stage.

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.

  • 312 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.