House prices to fall by 40% from peak, 3-4 million in neg. equity

carolt

According to the economist on Moneybox on Radio 4, this lunchtime, house prices are set to fall 35-40% from peak, leaving 3-4 million in negative equity, as prices go back to 2002 levels.

Didn't catch his name - can't re-listen yet, but here's the Moneybox page for when it becomes available - only caught a bit of a lengthy discusion on house prices, so if anyone else heard more and can comment, that would be great:

http://news.bbc.co.uk/1/hi/programmes/moneybox/7699362.stm

Conrad

The link did not work for me quickly enough, but I'm guessing it may be that chap from housepricecrash.co.uk, someone I've had discussions with since 2004 on that website. If it is him (known as financial planner on hpc) he is a genious and someone to be reveared, but perhaps has too strong a vested interest in a crash to be objective.

brit1234

Program 6 minutes in.

http://www.bbc.co.uk/iplayer/episode/b00f58h7/Money_Box_01112008/

one expert 35-40% falls

another upto 50% falls

LittleMissAspie

That's what I thought Conrad, but isn't FP's name Jonathan something? He's definitely not Henry Pryor or Andrew Lilico.

"Henry Pryor, founder of the property website Primemove.co.uk, and Dr Andrew Lilico, managing director of consultancy Europe Economics gave us their views."

jamtart6

grr i hate it when they say "millions in negative equity" as the only people in negative equity are those trying to sell!! so what if people are in negative equity but not moving, give em 10 years and they'll all have plenty of equity. just sensationalist headlines!!

amcluesent

IIRC some 300 'economists' were convinced that Britain leaving the ERM in 1992 was a catastrophe. Instead it was the basis of the best economy for a generation, all now thrown away by pension-thief and mendacious gob-!!!!! Clown of course.

The only question needed to be put to these pundits is how much of their own money have they placed on spread bets, if they are so convinced they are right.

luvpump

brit1234 wrote: »

Program 6 minutes in.

http://www.bbc.co.uk/iplayer/episode/b00f58h7/Money_Box_01112008/

one expert 35-40% falls

another upto 50% falls

35 to 50 % !!!! :T ...:T

Gorgeous_George

jamtart6 wrote: »

grr i hate it when they say "millions in negative equity" as the only people in negative equity are those trying to sell!! so what if people are in negative equity but not moving, give em 10 years and they'll all have plenty of equity. just sensationalist headlines!!

You seem to contradict yourself there jamtart.

1. the only people in negative equity are those trying to sell
2. if people are in negative equity but not moving
3. give em 10 years and they'll all have plenty of equity

If 1. is true, 2. can't be
If 3. is true, will they have equity even if they are not selling?

The truth is that you are in negative equity if your mortgage is worth more than your house. Whether it bothers you or not is optional.

GG

Swipe

It's about time people on these shows are finally being realistic.

StevieJ

luvpump wrote: »

35 to 50 % !!!! :T ...:T

So economists are suddenly the oracle of Delphi, I thought they knew FA according to you lot.

Heyman_2

Ah well, if it was on Radio 4 then it must be true :rolleyes: