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Fairyland

Uk To 'skirt Recession' As House Prices Drop And Joblessness Climbs

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MSM not just admiting but predicting further 4% drop next year. Methinks, 4% drop compensates 8% rise. A drop of 20% will wipe off 40% gains.

The economy is expected to expand by 1.9pc this year and just 0.4pc in 2017. This represents the weakest growth since 2009, when the economy shrank by 4.3pc.

In April, EY projected growth of 2.3pc and 2.6pc in 2016 and 2017. The 2018 growth forecast was also lowered to 1.4pc, from 2.4pc in 2018.

House prices are expected to drop 4pc next year, knocking almost £9,000 off the value of the average home.

The ITEM Club described exports as a “silver lining”, with the weaker pound expected to boost competitiveness. Net trade is forecast to add to growth for the first time since 2011 this year, as exports rise by 3.2pc.

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Yep seems all good for rebalancing the economy...we need an asset price correction, we need to close the trade deficit. Unless you are a metro elite and think Hpi in real terms plus an ever expanding population is doable forever. Bloody short termist economic and environmental terrorists.

Edited by crashmonitor

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House prices drop is what we need at the moment to protect the economy. If people have more disposable they will spend more in the economy.

Common sense. Competition for our money is a zero sum game. If I spend £100 a month more on housing, it's £100 I don't have to spend on the high street. No wonder grocery prices have fallen 34 months in a row and Aldi et al are doing well. This is all blindingly obvious to all but Telegraph journalists.

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Would love to see how those BTLers who rushed to buy before March deadline are reacting to this news.

4% drop on a £250K = £10,000 wiped off in a year.

Plus, interest relief change about to kick in next March.

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Predictions are all tosh. I need to see real figures and the money supply tightening. This is key to hpc. Until then up up up..

Edited by GreenDevil

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4% is just a rounding error at today's prices. If sentiment really does turn (and it seems like it is on the way), I can't see anything that will stop it from dropping that soon. But yes, agreed - all of these predictions are total garbage (including mine).

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House prices drop is what we need at the moment to protect the economy. If people have more disposable they will spend more in the economy.

An assumption based on spending money you've actually got rather than having a nice expensive house to borrow more against, with people who don't have one not counting, i.e. a solid, sustainable economy apparently.

Bring on drops (and I pay a mortgage). Not bothered about a lack of growth either, should be able to manage without that, not being able to just means the economy is based on pyramid scheme ideals and will blow up sooner or later.

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MSM not just admiting but predicting further 4% drop next year. Methinks, 4% drop compensates 8% rise. A drop of 20% will wipe off 40% gains.

Maybe in Fairyland. Sadly in the real world a 4% drop compensates at 4.32% rise and a drop of 20% will wipe off 25% gains.

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In May UK industry was already in recession. Brexit (and movements in the £) might bring industry out of recession.

So, which parts of the UK economy will be worse off post Brexit vote? I think it will be consumption and 'made up' services. Perhaps the UK could do with some growth in industry and a slowing down in excessive consumption of imported goods and vanity services?

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So, which parts of the UK economy will be worse off post Brexit vote? I think it will be consumption and 'made up' services. Perhaps the UK could do with some growth in industry and a slowing down in excessive consumption of imported goods and vanity services?

Yes, hopefully all nail bars will close.

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z

Yes, hopefully all nail bars will close.

But why? surely that's better than a zone 1 flat not designed for human habitation in a block of flats nobody has lived in for 20 years with amazing views of a block of flats nobody has lived in for 20 years. Money boxes in the sky are a steal at 1.5 million I know .. but I'd pick my nails looking good as that works in any apocalyptic BOE/UK utopia and I'm all into "security."

Or did I get confused about "security," again. I can be a bit special like that.

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