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Realistbear

Bo E: 2 Year Fixed Rate Mortgage Hits An 8 Year High

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http://uk.biz.yahoo.com/10072008/325/house...rcent-june.html

Thursday July 10, 10:29 AM
House prices fall 2 percent in June
LONDON (Reuters) - House prices fell at their sharpest annual pace in at least two decades in June, data showed on Thursday, as the downturn in the property market accelerates and threatens to plunge the economy into recession.
HBOS (LSE: HBOS.L - news) said prices fell 2 percent last month alone.
Prices were 8.7 percent lower on the year,
a bigger decline than the worst point of the last housing market crash in 1992
, wiping out 20,000 pounds off the value of the average home since last year's peak.
"Given that the early 1990s was at that stage the biggest housing slide of the last 50 years, it is fair to say we are now in the worst housing slide for over 50 years," said Michael Saunders, economist at Citigroup (ASFZ.PK - news) .
The figures came as Bank of England policymakers were still deciding what to do with interest rates this month, but economists said rising inflation meant the central bank would keep borrowing costs pegged at 5 percent for now.
"It certainly will feel unable to support the housing market and the wider economy which seems to moving to the brink of a recession," said David Page, economist at Investec (LSE: INVP.L - news) .
House prices have trebled over the last decade but a global credit crunch has made lenders much more wary about making new home loans. Mortgage approvals have more than halved from last year and activity in the once-booming property market has all but dried up.
With two-thirds of Britons owning their homes, consumer confidence has already tumbled and the wider economy is now also suffering.
House builder Barratt Developments (LSE: BDEV.L - news) <BDEV.L> said on Thursday it was cutting 1,200 jobs to cope with the downturn in the housing market. Its rivals have been doing much the same.
Austria's Wienerberger <WBSV.VI>, the world's biggest brickmaker, warned on Thursday that full-year earnings would fall this year because of a
"collapse" of residential construction
in Britain.
Economists say there is
little hope of a turnaround
in the housing market soon as long as mortgage finance is so hard to come by.
The cost of a taking out a
two-year fixed rate mortgage hit an 8-year high in June
, according to Bank of England data, and most lenders are now insisting on 25 percent of the home's value as a deposit.
"Little to suggest things will get better any time soon. In fact we expect to be in negative double digit territory (in house prices) from next month," said Alan Clarke, UK economist at BNP Paribas (Paris: FR0000131104 - news) .

There is a nice 4 bedroom detached in my cul-de-sac that was on for 325k when we first came down to my new area in March. Just looked it up on the net and observe that the asking price has been reduced somewhat. Its now 274k. Jubblicus Lovlicus.

Edited by Realistbear

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So this means the average house price has fallen £20,000 in under a year.

Halifax house prices.

Aug 2007 £199,770

June 2008 180,344.

Where does that leave all those that took out an 125% mortgage last year if they spent the 25%

on stamp duty, legal fees and tonsing up the house with cheap tat.

So all those that bought an average house last summer on a 125% mortgage are down around

£50-70,000 in under a year depending on how much cheap tat they bought. Plenty of negative

quity there then. I guess it's time to push for a nice big pay rise.

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So this means the average house price has fallen £20,000 in under a year.

Halifax house prices.

Aug 2007 £199,770

June 2008 180,344.

Where does that leave all those that took out an 125% mortgage last year if they spent the 25%

on stamp duty, legal fees and tonsing up the house with cheap tat.

So all those that bought an average house last summer on a 125% mortgage are down around

£50-70,000 in under a year depending on how much cheap tat they bought. Plenty of negative

quity there then. I guess it's time to push for a nice big pay rise.

May as well add in the rate of inflation (currently about 47% by my reckoning) just for good measure!

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http://uk.biz.yahoo.com/10072008/325/house...rcent-june.html
Thursday July 10, 10:29 AM
House prices fall 2 percent in June
LONDON (Reuters) - House prices fell at their sharpest annual pace in at least two decades in June, data showed on Thursday, as the downturn in the property market accelerates and threatens to plunge the economy into recession.
HBOS (LSE: HBOS.L - news) said prices fell 2 percent last month alone.
Prices were 8.7 percent lower on the year,
a bigger decline than the worst point of the last housing market crash in 1992
, wiping out 20,000 pounds off the value of the average home since last year's peak.
"Given that the early 1990s was at that stage the biggest housing slide of the last 50 years, it is fair to say we are now in the worst housing slide for over 50 years," said Michael Saunders, economist at Citigroup (ASFZ.PK - news) .
The figures came as Bank of England policymakers were still deciding what to do with interest rates this month, but economists said rising inflation meant the central bank would keep borrowing costs pegged at 5 percent for now.
"It certainly will feel unable to support the housing market and the wider economy which seems to moving to the brink of a recession," said David Page, economist at Investec (LSE: INVP.L - news) .
House prices have trebled over the last decade but a global credit crunch has made lenders much more wary about making new home loans. Mortgage approvals have more than halved from last year and activity in the once-booming property market has all but dried up.
With two-thirds of Britons owning their homes, consumer confidence has already tumbled and the wider economy is now also suffering.
House builder Barratt Developments (LSE: BDEV.L - news) <BDEV.L> said on Thursday it was cutting 1,200 jobs to cope with the downturn in the housing market. Its rivals have been doing much the same.
Austria's Wienerberger <WBSV.VI>, the world's biggest brickmaker, warned on Thursday that full-year earnings would fall this year because of a
"collapse" of residential construction
in Britain.
Economists say there is
little hope of a turnaround
in the housing market soon as long as mortgage finance is so hard to come by.
The cost of a taking out a
two-year fixed rate mortgage hit an 8-year high in June
, according to Bank of England data, and most lenders are now insisting on 25 percent of the home's value as a deposit.
"Little to suggest things will get better any time soon. In fact we expect to be in negative double digit territory (in house prices) from next month," said Alan Clarke, UK economist at BNP Paribas (Paris: FR0000131104 - news) .

There is a nice 4 bedroom detached in my cul-de-sac that was on for 325k when we first came down to my new area in March. Just looked it up on the net and observe that the asking price has been reduced somewhat. Its now 274k. Jubblicus Lovlicus.

"This time next year, Rodicus, we'll all be potless!"

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  • 401 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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