Thursday, April 19, 2012
The wagons are circling around Britain
Fitch Ratings warns that Holland risks losing its AAA rating. The warning comes as Dutch property tips into deeper slump, with the inventory of unsold homes nearing southern European levels. Household debt is the eurozoneâ€™s highest at 249pc of income, compared with 202pc in Ireland, 149pc in the UK, 124pc in Spain, 90pc in Germany, 78pc in France and 66pc in Italy - according to Eurostat data from 2010. Home prices have fallen 11pc from their peak in August 2008, or 15pc in real terms, leaving up to 500,000 people in negative equity. Building permits have dropped 9pc from a year ago, the lowest since 1953. "We expect prices to drop 5pc in 2012." The stock of unsold properties has doubled to 221,000, almost double the declared level in the US on a per capita basis.