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The Masked Tulip

'ghost' Buyers Fuelled Us Crash

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Taylor Wimpey has said the trend of people buying homes they never intended to live in helped cause the housing crash in the US.

The firm's US operations made a pre-tax loss of £254 million as the bottom dropped out of the market last year.

Operating margins at the business collapsed by 70 per cent to 5.1 per cent while completions tumbled by a quarter to 6,740 for the year ending December 2007.

Its US woes helped the group nosedive into the red, recording a pre-tax loss of £19.5 million from a £405.6 million profit last time.

The firm's chief executive of its UK housing division said the US was now reeling from the affects of buyers not being able to pay back mortgages they never really intended to hang onto. Ian Sutcliffe said: "Market conditions in the US remain extremely difficult and I can't see it improving."

"Unfortunately a lot of people got sucked in which was all well and good when they thought it was a one-way track. But they were borrowing money when they really shouldn't have and they never really thought they would have to pay the loan back in full because they thought they could easily sell it."

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  • 297 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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