Respected Analyst : House prices 'could drop another 55%' and leave Britain bankrupt

Really2 wrote: »

Is it true Leeds have cleared their debts now (well the ones they actualy paid)

Not sure - though it seems to be de rigeur for all football clubs to run with mountainous debts these days. I blame Sky, and probably the Daily Mail as well

I'm afraid to say it but all you guys are well and truly DEKCUF .......

HMS Britain is sinking and there only one lifejacket left .... and its got my name on ..

When do you think we'll hit the bottom Kenny?

I think that the bottom will be at a figure of around 35% down from peak, if it were not for the BoE keeping interest rates artificially low this would have meant the bottom would have occured around August time. The problem I have encoutered is because rates are low and thus the SVR's are low then people are able to potter around waiting to sell and hoping for an upturn, which won't happen until the 35% correction has occured. The low interest rates are resulting in stagnation, sensible buyers and investors are holding fire because they know these still a good bit to come off, and sellers don't seem to get the message that a trying to sell for 10 or 15% less than peak isn't going to get your property shifted.

So although I still think the bulk of the correction will have occured by August time, that won't be the bottom of the market. What really needs to happen to get the housing correction sorted is some sensible long term BoE interest rates and proper mortgage products that reflect the risk involved to the bank of the product (ie 60% LTV should get a very good rate). I'm getting quotes for mortgage products that are virtually the same as when the base rates where 4% or above, when they are now 0.5%, with a much higher deposit/equity held.

The key to sparking rapid house price falls and the eventual bounce back will be BofE rates going upward, which at some point has to happen, this will force the sellers hands, and will get the market moving, rather than just idling about. The problem is that Mr Clown has got the UK into such a mess, he ain't going to be in control of the upward interest rate movement, as the UK will be one of the last the pick-up, and given that we import so much and a weak pound, and other countries coming out of recession will force up UK inflation, and thus interest rates with Mr Clown able to do little about it.

Pssst wrote: »

OMG not red top man again...I have a migraine coming on..

You got to him there :rotfl: