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Smell the Fear

Bbc News - Boom Over

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Just caught the last few seconds of BBC1 news report - said housing boom is over, debt is high and people are struggling to pay...... :lol:

Anyone else catch the whole thing?

Edit : here's a link - we've seen the story before, but there are some good comments on the bbc site.

BBC

Edited by Smell the Fear

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Just caught the last few seconds of BBC1 news report - said housing boom is over, debt is high and people are struggling to pay...... :lol:

Anyone else catch the whole thing?

Yep - Hopefully the dipsh*ts at the bbc (yes they are dipsh*ts) will now start to report the truth, this maybe a one off report from them which wouldnt suprise me. I dont like the bbc and thier crappy reporting :lol:

The atricle started due to the >60% increase in repo orders :)

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They posted some reposession figures

2004: 6,000

2005: 10,000 (predicted)

1997: 33,000

Interesting that 1997 was the highest, 7 years after the start of the crash. If that is the case then a rise of 60% 2004-2005 is very significant I would say. It could easily continue rising and go above the 1997 figure in 7 years time. Very bearish signal.

They stated that banks are more likely to issue proceedings against home owners in mortgage arrears now, a way of initiating discussions about payments.

Edited by munimula

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Just caught the last few seconds of BBC1 news report - said housing boom is over, debt is high and people are struggling to pay...... :lol:

Anyone else catch the whole thing?

Edit : here's a link - we've seen the story before, but there are some good comments on the bbc site.

BBC

1. denial of the situation.

2. realization of the reality of what is happening.

3. fear of the realization of what is happening.

4. acceptance of the reality of the situation.

Move from Step 1 to Step 2.

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Debt is STILL growing VERY rapidly, never mind remaining. The BOE lost control years ago and are still trying to pump it up with their last rate cut a prime example.

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Edit : here's a link - we've seen the story before, but there are some good comments on the bbc site.

BBC

Now posting comments at that BBC link;

It goes to show that only property dealers and estate agents and banks benefit from crazy house prices. Normal people who just want somewhere to live, especially young people and young families can no longer afford to buy a house and those who's houses have gone up in value do not benefit because what can they do, sell up? And live where?

Leigh Porter, Fulham UK

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Guest Charlie The Tramp

Debt is STILL growing VERY rapidly, never mind remaining. The BOE lost control years ago and are still trying to pump it up with their last rate cut a prime example.

What annoys me is that many innocent people who are financially responsible will lose their job when the downturn comes, and some may even lose their homes over this irresponsible debt bubble being allowed to continue.

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Do you think they see what the liklihood is now of a DISASTROUS Xmas retail period. Joe bloggs has no money and if he spends it will be debt/credit cards based. My wife and I have already agreed to scale back presents etc big time this year and we are relatively comfortable with no CC debt. Necks in.

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Guest tenant super

1997: 33,000

Interesting that 1997 was the highest, 7 years after the start of the crash.

Minumula I very much doubt 1997 saw the peak of repossessions? I seem to recall a recent posting pointing out one years repo stats reaching over a hundred thousand.

Nonetheless this is definitely a wake up call.

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Minumula I very much doubt 1997 saw the peak of repossessions? I seem to recall a recent posting pointing out one years repo stats reaching over a hundred thousand.

Nonetheless this is definitely a wake up call.

Then why would the BBC only show the '97 figure? They showed it as if to say, look things aren't that bad because in 1997 reposessions were 33,000.

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What annoys me is that many innocent people who are financially responsible will lose their job when the downturn comes, and some may even lose their homes over this irresponsible debt bubble being allowed to continue.

Already has I'm afraid. The pace of outsourcing and business closures has been rapidly increased thank s to the boom. Has been the perfect opportunity for multi-nationals in particular to cash in on over-priced browfield sites and shut down businesses in the UK.

The size of the recession coming will have been exaggerated thanks to recent monetary policy.

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This posted on BBC site for comments on the CML data. Should we feel sorry or told you so.

My house was repossessed a month ago. At the height of the property boom in early 2004 I splashed out far more than I could actually afford on a large property with the intention of selling it on at a profit. It wasn't long after that the property slowdown started but I kept hold of the property and financed the mortgage by getting myself further into debt, I was certain that the housing market would take off again and I would realise my gains. Following two years of quite harsh housing market drops in the south west I have been forced to admit defeat.

I blame myself for everything that has happened but I also think there are a lot of companies around who like to put a rosy outlook on the housing market and try to make everyone think it will always go up (estate agents, surveyors, mortgage companies), they should take part of the blame for lying to the public.

Dan, Bristol

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They posted some reposession figures

2004: 6,000

2005: 10,000 (predicted)

1997: 33,000

Interesting that 1997 was the highest, 7 years after the start of the crash. If that is the case then a rise of 60% 2004-2005 is very significant I would say. It could easily continue rising and go above the 1997 figure in 7 years time. Very bearish signal.

If it keeps increasing at that rate we'll be up to 1997 figures in just over 2 years...!

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Whats the chances of the banks Repo-ing defaulters earlier than usual, as they have a better chance of getting more money back from the house sale at the start of a crash?

If the default rate & economic downturn are terrible, surely this is a possibility. Better than being stuck with an unsaleable empty property in a glut.

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Then why would the BBC only show the '97 figure? They showed it as if to say, look things aren't that bad because in 1997 reposessions were 33,000.

No the high 100k+ figure was for "actions entered". Actually the repo actions entered figure topped out in 1991 at 180,000 in 1991 see this link and the various worksheets http://www.york.ac.uk/res/ukhr/ukhr0405/ta...04%20053a-f.xls

The actual repo orders made (and not suspended) - ie properties really repossesed - averaged around 50,000 in the recession with a peak of 75,000 in 1991. Not as high as you have thought...see the ODPM link below for the full data from 1969 onwards.

http://www.odpm.gov.uk/stellent/groups/odp...ouse_604097.xls

or this CML link with same figures http://www.cml.org.uk/servlet/dycon/zt-cml...P4A'!A1

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This has just been discussed on Radio5. They did the usual thing, BBC financial bod and VI bod "discussing" the reasons etc.

VI's words were something along the lines of:

"These figures are nothing to worried about - they follow on from remarkable lows, so the rise is large due to an unremarkable rise above a remarkable low..."

"The figures are nothing to do with the state of the housing market and/or debt and in fact these respossessions only represent s small number of people who have lost jobs or businesses - lifechanging circumstances causing them to struggle in the short term"

"Lenders are not over-lending as the continued low interest rates mean that people can afford to borrow higher and higher multiples of their saleries without problems... and so on"

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This was my contribution to the BBC page....

Why is it that the media (including the BBC) have given so much air time over the last few years, to so called "Property Experts" that are simply industry insiders with a vested interest in talking the overpriced property market up? I really feel for those poor people who have had their homes repossessed. There are many TV producers with blood on their hands today.

I bet they don't post it.

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This has just been discussed on Radio5. They did the usual thing, BBC financial bod and VI bod "discussing" the reasons etc.

VI's words were something along the lines of:

"These figures are nothing to worried about - they follow on from remarkable lows, so the rise is large due to an unremarkable rise above a remarkable low..."

"The figures are nothing to do with the state of the housing market and/or debt and in fact these respossessions only represent s small number of people who have lost jobs or businesses - lifechanging circumstances causing them to struggle in the short term"

"Lenders are not over-lending as the continued low interest rates mean that people can afford to borrow higher and higher multiples of their saleries without problems... and so on"

If this was a tory government somehow I don't see the BBC being so relaxed about this issue. They weren't 14 years ago! Why people stick up for the Beeb is beyond me. Mr and Mrs average paying a fee for that lot to spin and dissemble to avoid rocking their political masters boat because it is closer to their own left liberal agenda. Uh oh, I'm starting to rant.

Edited by Tempest

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If this was a tory government somehow I don't see the BBC being so relaxed about this issue. They weren't 14 years ago! Why people stick up for the Beeb is beyond me. Mr and Mrs average paying a fee for that lot to spin and dissemble to avoid rocking their political masters boat because it is closer to their own left liberal agenda. Uh oh, I'm starting to rant.

To be fair, it was the VI that was saying this, the Beeb Journo was more bearish and forecast that the repo numbers would increase in the coming months.

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the quote by the public is the best.

Got to feel for him only because of his honesty!

DAN join us.

My house was repossessed a month ago. At the height of the property boom in early 2004 I splashed out far more than I could actually afford on a large property with the intention of selling it on at a profit. It wasn't long after that the property slowdown started but I kept hold of the property and financed the mortgage by getting myself further into debt, I was certain that the housing market would take off again and I would realise my gains. Following two years of quite harsh housing market drops in the south west I have been forced to admit defeat.

I blame myself for everything that has happened but I also think there are a lot of companies around who like to put a rosy outlook on the housing market and try to make everyone think it will always go up (estate agents, surveyors, mortgage companies), they should take part of the blame for lying to the public.

Dan, Bristol

TB

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My fellow tennant - from N. Ireland - often rants about BBC bias re. the situation over there. I confess I used to dismiss him out of hand.

Couldn't argue with him this week when he was banging on about the PC brigade at the Beeb - he pointed out that last month saw "Loyalist rioting" that was reported as such 10 minutes after the first brick was thrown, whereas Lozells was "disturbances" in every report until it finally became "disturbances between black and asian youths" about 2 days later.

Nowt to do with economic reporting. But you can see why the BBC only put job ads in the Guardian.

Now, where's my copy of the Daily Mail :blink:

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  • 337 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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