Sunday, January 13, 2008

YEESSSS! Look at the sobering stats though – No more boom & bust eh Gordon?!?

Fall in 'over-inflated' house prices inevitable

House prices in Britain are the most over-inflated in the world and a fall in the value of homes is inevitable, leading economists have warned. The cost of property in this country has risen faster than in any other affluent nation, making it increasingly difficult for first-time buyers and young families to own a home, an international study has found. Property prices in Britain have risen for 13 successive years, and in the past decade the increase has been particularly steep. The price of an average home has risen from £70,000 when Labour came to power in 1997, to nearly £200,000 today. In the same period, the retail price index rose by only 30 per cent. An average home costs £156,000 in America, £149,000 in Germany and £141,000 in New Zealand.

Posted by tyrellcorporation @ 08:58 AM (851 views)
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4 thoughts on “YEESSSS! Look at the sobering stats though – No more boom & bust eh Gordon?!?

  • Cool! Let’s bring it on!

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  • With the US crashing badly and the UK growing twice as fast, you’d have to be Walter Mittee to think it isn’t going to happen here. Either that, or an EA/CML member of course! Now that US is as good as in recession because of HPC, future UK governments need to learn. As the report says: economy out of control. The Northern Rock nationalisation is a perfect example of how (actually) even a reasonably good book value can’t rustle up funds in the private sector. A private sector fleeing to commodities such as coffee. I am sure the VIs are doing the same privately (we’ll see reports soon) whilst keeping their employers’ mantra up.

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  • planning4acrash says:

    http://www.propertysnake.co.uk – 90,717

    After falling from 140,000 properties, the search engine stuck at about 85,000 all Christmas after the “joy” of the last interest rate cut. Now the quantity of reduced prices, predictably, has risen, presumably because peep’s have put their prices up and failed to sell. Propertysnake is proving to be a useful barometer of seller sentiment!

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  • I think the issue is not so much that prices are way too high and will inevitably fall; it is a case of when, given the pressure all the VIs and incompetent govt ministers are trying to apply. The longer they can defer the inevitable, the more the imbalances become entrenched and the more people’s lives are restricted. It’s a tilt towards third world economies.

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