Debate House Prices
In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non MoneySaving matters are no longer permitted. This includes wider debates about general house prices, the economy and politics. As a result, we have taken the decision to keep this board permanently closed, but it remains viewable for users who may find some useful information in it. Thank you for your understanding.
We'd like to remind Forumites to please avoid political debate on the Forum. This is to keep it a safe and useful space for MoneySaving discussions. Threads that are - or become - political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
U.K.’s ‘High’ House Prices May Face Renewed Decline, IMF Says

Spiv_2
Posts: 280 Forumite
Oct. 6 (Bloomberg) -- U.K. house prices may fall further as policy measures may not be enough to support the property market, the International Monetary Fund said.
Home values have stayed resilient partly because of a tax exemption on first-home purchases under 250,000 pounds ($397,000), the IMF said in a footnote of its World Economic Outlook published today in Washington. The tax holiday, implemented by the previous government in March for a two-year period, is currently under review.
“What remains worrisome, however, is that house prices are still high based on traditional valuation yardsticks,” the IMF said. “Policy support may not be enough to prevent further correction.”
Recent data indicate the U.K. housing market has started to falter after partially erasing the price losses sustained during the recession. The prospect of the deepest public spending cuts since World War II has sparked concerns of higher unemployment, threatening home values.
“A lot will depend on the path of economic recovery: if employment creation remains low, risks of a double dip in housing naturally increase,” the IMF said in the report, referring to both the U.K. and U.S. property markets.
http://noir.bloomberg.com/apps/news?pid=newsarchive&sid=at689qIagSE8
0
Comments
-
Those IMF guys must have been reading my posts again.
I've been saying it for ages."The problem with quotes on the internet is that you never know whether they are genuine or not" -
Albert Einstein0 -
A lot of literal diarrhea from the IMF this week, nothing to do with support for the Tories during conference week I assume.'Just think for a moment what a prospect that is. A single market without barriers visible or invisible giving you direct and unhindered access to the purchasing power of over 300 million of the worlds wealthiest and most prosperous people' Margaret Thatcher0
-
I thought something massive had happened when I did my usual "what's come on the market today" search .... double the results. Going through though, it looked like a new commercial seller had uploaded all his stock ... and c0cked it up as most were on there 2-3x each.0
-
you think house prices are not / will not fall in real terms?
Let me think about this Poppycock, real, nominal, oh I am so confusedI do think that the IMF are the ultimate quango.
'Just think for a moment what a prospect that is. A single market without barriers visible or invisible giving you direct and unhindered access to the purchasing power of over 300 million of the worlds wealthiest and most prosperous people' Margaret Thatcher0 -
Great news.0
-
Britain's economic recovery is at risk because its over-valued housing market faces a 'double dip' in prices, the International Monetary Fund said last night.
The IMF warned that the country's house prices are too high and this could lead to people being unable to meet mortgage payments if interest rates rise.
This, in turn, could affect consumer confidence and the UK's recovery prospects.
'House prices in Britain are still high based on the traditional valuation yardsticks,' the Fund said in its World Economic Outlook report.
The Fund's top economists said the two-year exemption on stamp duty on homes worth up to £250,000 for first-time buyers might not be adequate to prevent sharp price falls.
In contrast to the recent inspection of the UK economy by an IMF team, the Fund's chief economist Olivier Blanchard also said Chancellor George Osborne could be moving too fast on cutting the budget.
He cautioned the Chancellor – who arrives in Washington today – that he may have to 'revisit' his fiscal austerity plan.
Mr Blanchard insisted: 'I don't think it threatens growth', but added that if growth turned out to be lower than expected, the Government would need to look at matters again.
His comments came as World Bank president Robert Zoellick praised the Coalition's spending plans.
He said: 'I think that what is being done in Britain is courageous and important.
'What Britain is doing to try and get ahead of the problems is a wise course.
'It's going to have to be done elsewhere to deal with the uncertainty created by very, very, very large debt.
'Now what you have to see is if it happened overnight – if all of this was pulled back overnight – that could create a problem.
'The way most government policies work, I don't think it will do that.'
Mr Osborne is in Washington to attend the annual round of gatherings of the Group of Seven richest countries, the IMF and the World Bank.
The IMF's intervention on budget policy will not be welcomed by the Chancellor, who has been claiming support from the global financial experts for his policy of cuts that will be outlined in the Comprehensive Spending Review on
http://www.dailymail.co.uk/news/article-1318432/House-prices-plummet-3-6-month-biggest-fall-recorded.html0
This discussion has been closed.
Confirm your email address to Create Threads and Reply

Categories
- All Categories
- 348.2K Banking & Borrowing
- 252.1K Reduce Debt & Boost Income
- 452.4K Spending & Discounts
- 240.8K Work, Benefits & Business
- 617.1K Mortgages, Homes & Bills
- 175.6K Life & Family
- 254K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 15.1K Coronavirus Support Boards