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It is different this time

Brown's Spokesman: Don't Panic House Prices Remain 40% Higher Than Five Years Ago

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http://www.guardian.co.uk/business/2008/ju...ket.houseprices

Fears that the housing market is in freefall were heightened yesterday when Halifax reported that house prices tumbled at their fastest pace on record in the second quarter of the year.

The country's biggest mortgage lender said prices slumped 2% in June from May, adding to May's 2.5% fall and April's 1.5% drop. The resultant 5.5% drop for the quarter was the worst since Halifax's records began 25 years ago and far worse than at any time during the housing market collapse of the early 1990s.

Vince Cable, the Liberal Democrat treasury spokesman, said: "As people start to feel the pinch, house prices are going into freefall. The years of uncontrolled and irresponsible lending by the banks are now coming back to haunt us.

"With falling house prices and rising mortgage costs there is a real danger that many people could find themselves in negative equity and under serious threat of repossession."

But the Bank of England left interest rates at 5% yesterday for the third month running as it remained more concerned about rising inflation than about the housing market. City economists predicted rates would stay at 5% for some months before the Bank's monetary policy committee eventually cuts them as the slowing economy pulls inflation lower.

Halifax said house prices were down 6.1% last month from June last year and are now 9% below the peak last August, which brought to an end a trebling of prices over the previous decade. The average house has now shed £20,000 of its value and is worth £180,000. If prices continue falling at June's rate for a year, they would drop by a quarter over the next 12 months.

The government sought to calm jitters, reminding homeowners that prices remain 40% higher than five years ago. "The underlying fundamentals remain in place for a healthy housing market over the medium to long term, with low interest rates, low unemployment and high long term demand for homes from first time buyers and young families," a spokesman said.

The latest data came after grim news this week from big housebuilders who have shed thousands of jobs as new home sales have collapsed in the face of tight lending criteria from banks and a reluctance by people to buy in a falling market. Martin Ellis , Halifax's chief economist, said that with employment at a record high, the underpinnings of the housing market remained firm. "The average UK price remains slightly higher than two years ago and is appreciably stronger than three or four years ago," he said.

But other market experts were unconvinced. "The dire news from the housing market in recent weeks suggests that worse is still to come," said Sheema Shah at Capital Economics. "Mortgage approvals have slumped and the mortgage credit squeeze shows little signs of easing.

"Against such a backdrop, there is plenty of scope for further house price falls. We expect house prices to fall by 15% this year, with an ultimate decline of 35% over the next three years."

Peter Newland, economist at Lehman Brothers, said prices would fall 15% during 2008 and 2009 combined, possibly pushing the economy into recession.

The National Association of Estate Agents called on the government to abolish stamp duty for first-time buyers in an effort to support the housing market.

"The government can no longer afford to sit on its hands with regards to stamp duty and we call on the housing minister again to abolish stamp duty for first time buyers and move the thresholds up to ease pressure ... and restore confidence," said chief executive Peter Bolton King.

People are losing their jobs & homes every day, as home repossession orders are at an all-time high. House prices, as Vince Cable said, are going into freefall and mortgage approvals are at an all time low yet the government's spokesman claims

"The underlying fundamentals remain in place for a healthy housing market over the medium to long term, with low interest rates, low unemployment and high long term demand for homes from first time buyers and young families"

What planet is he on? I expect some sort of spin from the government but this is not a spin the muppets are taking the biscuit!

(edited for spelling)

Edited by It is different this time

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Guest Mr Parry
http://www.guardian.co.uk/business/2008/ju...ket.houseprices

People are losing their jobs & homes every day, as home repossession orders are at an all-time high. House prices, as Vince Cable said, are going into freefall and mortgages approval are at an all time low yet the government's spokesman claims

"The underlying fundamentals remain in place for a healthy housing market over the medium to long term, with low interest rates, low unemployment and high long term demand for homes from first time buyers and young families"

What planet is he on? I expect some sort of spin from the government but this is not a spin the muppets are taking the biscuit!

I feel one of those Comical Ali pics coming on.

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Perhaps the government spokesperson should explain in detail what these underlying fundamentals are. And exactly how they are classified as healthy. What are they spinning about? The quality of foundations dug to support UK homes :ph34r:

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Perhaps the government spokesperson should explain in detail what these underlying fundamentals are. And exactly how they are classified as healthy. What are they spinning about? The quality of foundations dug to support UK homes :ph34r:

Quite!

It has been observed that the comparison timescales are getting longer (still better, higher than X, Y Z). Someone on here yesterday suggested that the next thing we'll hear is that house prices are higher than under the Tories.

Spin of scoundrels, caught red handed... spinning, lying, obfuscating, whilst they pack their bags and loot the office.

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The government sought to calm jitters, reminding homeowners that prices remain 40% higher than five years ago.

They may think that's reassuring but what it actually means is that house prices have a lot further to fall.

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Guess what!!!

The price of a can of Coca-Cola is now on average 60% higher than they were in 1990. :o

Obviously medium to long-term growth prospects for the Coke market are excellent, everyone should aspire to Coke ownership.

Oh wait a minute.... isn't that just inflation?

EDIT: crap typing, blah blah blah

Edited by JohnnyB

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Quite!

It has been observed that the comparison timescales are getting longer (still better, higher than X, Y Z). Someone on here yesterday suggested that the next thing we'll hear is that house prices are higher than under the Tories.

Spin of scoundrels, caught red handed... spinning, lying, obfuscating, whilst they pack their bags and loot the office.

I know it is expecting far too much for NuLiar to come out and tell something like the truth. But we have had 11 years of spin, lies, deceit, sleaze and burying of bad news. I think they are now at the point where so many lies have been told so often that the Labour party believe the lies are now the truth. What is to come over the next 2 years? Houseprices are still higher than when Queen Victoria was on the throne? Inflation is lower than Zimbabwe!!!!! Strong fundamentals, low unemployment, low interest rates, shortage of homes, pent up FTB demand, well placed to survive the global downturn, more motorists will pay less under the new VED charges, we will have a referendum on the Lisbon treaty, low immigration, only 100 Polish plumbers in London. ALL BLOODY LIES!!!!!

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Guest KingCharles1st

Actually- after this mornings news- I think its going to be KNIFE CRIME that finally does these tossers in...

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KingCharles1st #10: Actually- after this mornings news- I think its going to be KNIFE CRIME that finally does these tossers in...

You mean Labour politicians are going to knife each other in the back? Oh joy!

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Actually- after this mornings news- I think its going to be KNIFE CRIME that finally does these tossers in...

Someone is going to stab them?

good

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  • 396 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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