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pobby

Oh Yes,i Remember It Well.......

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Look at the housing boom during the late Ted Heath’s early 70s economy. That was the biggest real rate of increase in house prices in recent British history! Between 1970 and 1973 the average house price in the UK grew by 123%.

And what about the slowdown that followed? In 1975 as oil driven inflation forced interest rates up to 13% the housing market hit the brakes. Average house price inflation fell from 18.2% to 4.5% – some slowdown!

You’re entering exactly the same situation today. Since 1997, the average house has increased by 184% and the ratio of income to house prices has reached 5.8 – almost exactly the same as 30 years ago!

You might not be too worried. After all house prices continued to rise in the 1970s – just at a slower rate. But this time the effect is going to be even worse and whatever your situation, you need to sit up and pay attention!

You see, the housing boom has fueled today’s ‘feelgood factor’. Since 1993, the market value of equity release schemes has grown a staggering 5,000%. People have been using their homes like a cash machine – withdrawing money whenever they needed it.

But this house of cards is about to come tumbling down. In fact, it’s happening ALREADY! During the first quarter of 2005, repossession court actions by banks and building societies rose to 25,869 – the highest quarterly total since Labour came to power eight years ago.

People’s finances are being stretched. That means less money will be spent on new cars, DVD recorders and dinners in fancy restaurants. Less money will be invested in shares and bonds. And less money means recession, a fragile stock market and a possible housing crash.

Even the High Street giants are getting the jitters. Next, the fashion chain, reported like-for-like sales down 3.2% in the 5 months to January. Last autumn was the "worst consumer environment for 15 years," said Simon Wolfson, Next's chief executive. And the Christmas sales failed to stoke revenues for the UK's big retailers, too. In the week to January 1st 2005, the number of shoppers dropped 8% from the year before.

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Yeah Gorgon Clown, sorry Jordan Frown is walking into the biggest prat fall set up in political history. I think that Guy Fawkes will soon be replaced on bonfires across Britain with Brown effigies in yer dad’s old suite. :)

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The issue is,like Thatch and her cronies,its unlikely to hit Clown and co. as hard as it will hit a lot of ordinary folks.Oh hang on a mo------what about old Tony and his port folio------- :D

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  • 301 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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