Thursday, January 1, 2009
House prices to boom (err tank) in 2009
Simon Ward, chief economist at New Star, said: "The problem with negative equity is the fact that it interacts with rising unemployment, causing more repossessions. That is the scenario we're facing at the moment." Economists expect the number of people out of work to rise towards 3 million this year, leaving many of the most over-extended with little choice other than to sell their homes or give them up to their mortgage companies.