House prices may fall by up to 25%

brit1234

House prices may fall by up to 25%

By Dan Atkinson and Alex Hawkes
16 April 2011

House prices are set to plunge by between 20 and 25% by the end of next year, a leading consultancy will warn tomorrow.

Clients of CheckRisk, the specialist investment strategy adviser, will be told that several trends will send property prices tumbling.

These include rising interest rates and inflation, worsening job prospects, the high levels of public and private debt and reduced mortgage lending.

'Effectively, British people have run out of money,' said Nick Bullman of CheckRisk.

The report's conclusions are far gloomier than official data would suggest, although these, too, have been depressed recently.

Earlier this month, the latest figures from the Department for Communities and Local Government showed a 0.7% rise in prices for the year to February and a 0.3% rise during the month itself.

In the three months to February, prices fell 0.3% compared with a 0.7% fall in the three months to November.

The figures are based on prices paid on completion of purchases.

CheckRisk will warn that commercial property prices are at risk of even greater falls.

The dire prediction of misery in the housing market comes after a leading investment bank said that London office rents, by contrast, were set to hit record levels.

Deutsche Bank said that rents in the West End could hit £130 per sq ft in the next two years. That would break previous records of £120 a sq ft and be a huge increase on the current £90 a sq ft.

There is a major squeeze on office space, given that there has been little investment in new buildings in the capital.

http://www.thisismoney.co.uk/mortgages-and-homes/article.html?in_article_id=530706&in_page_id=8#ixzz1JiN97XyI

DervProf

There follows lots of posts expalining why this is impossible..........

Elton

UK House Prices Face Sharp Fall - news.bbc.co.uk/1/hi/business/2577069.stm

DervProf

Elton wrote: »

UK House Prices Face Sharp Fall - news.bbc.co.uk/1/hi/business/2577069.stm

Hurray, it really is impossible !

Buy, buy, buy !

ess0two

God loves a trier.

HAMISH_MCTAVISH

Elton wrote: »

UK House Prices Face Sharp Fall - news.bbc.co.uk/1/hi/business/2577069.stm

Love that article.:D

Jimmy_31

The predicted percentage drops are getting bigger and bigger

wotsthat

Clients of CheckRisk, the specialist investment strategy adviser, will be told that several trends will send property prices tumbling.

These include rising interest rates and inflation, worsening job prospects, the high levels of public and private debt and reduced mortgage lending.

Who'd want to be a client of these muppets? There's no trend of rising interest rates, inflation or worsening job prospects. I'll give them high levels of public debt and reduced mortgage lending but private (or mortgage) debt is dramatically reducing.

the.ciscokid

wotsthat wrote: »

Who'd want to be a client of these muppets? There's no trend of rising interest rates, inflation or worsening job prospects. I'll give them high levels of public debt and reduced mortgage lending but private (or mortgage) debt is dramatically reducing.

Do you have a link to some detail on that at all? I can only seem to find BoE data that tends to disagree with you.

http://www.bankofengland.co.uk/mfsd/iadb/fromshowcolumns.asp?Travel=NIxSCxSUx&FromSeries=1&ToSeries=50&DAT=RNG&FD=1&FM=Jan&FY=1963&TD=16&TM=Apr&TY=2011&VFD=Y&html.x=11&html.y=10&CSVF=TT&C=11A&Filter=N

Monthly amounts outstanding of total sterling net secured lending to individuals and housing associations (in sterling millions) seasonally adjusted LPMVTXK [a] [c] [d] [e] [f] [g]

31 Jan 09 1225630
28 Feb 09 1226984
31 Mar 09 1227453
30 Apr 09 1227505
31 May 09 1227748
30 Jun 09 1228404
31 Jul 09 1228266
31 Aug 09 1229525
30 Sep 09 1230783
31 Oct 09 1231369
30 Nov 09 1232779
31 Dec 09 1234134
31 Jan 10 1237608
28 Feb 10 1239157
31 Mar 10 1238362
30 Apr 10 1238429
31 May 10 1239342
30 Jun 10 1238993
31 Jul 10 1238779
31 Aug 10 1240184
30 Sep 10 1240486
31 Oct 10 1237780
30 Nov 10 1238597
31 Dec 10 1238322
31 Jan 11 1240394
28 Feb 11 1241583

System

Ah checkrisk! Damn, STRing tomorrow

Loughton_Monkey

Latest from BBC Web Site

17 April 2011 Last updated at 01:46

UK House Prices fall 52.7% overnight - CML official data reveals.

The Council for Mortgage Lenders (CML) this morning revealed that house prices dropped a staggering 52.7% during the night, proving that prices can fall even further and faster than even the most pessimistic bears have been saying. "This just had to come. And come soon." said Len Da'Fortune, Finance Director.

Speaking at a hastily prepared news conference this morning, Mr Da'Fortune explained that this fall was part of an orchestrated effort between Mortgage Lenders, Estate Agents, and the National Federation of Builders. "With the unstoppable rise in ill-informed speculation, cant, and complete rubbish about property prices crashing, we felt it was time to give these disgusting senseless idiots what they want so that we can get on with our lives.

The fall in prices happened at exactly 01:34 a.m. when every 'for sale' house was dropped in price by 52.7%, and then marked back up to full price again at 01:35 a.m. Since all Estate Agents were closed during that minute, not a single offer was made at the lower prices, and hence no house was sold at such ridiculous prices.

"Perhaps this will encourage all those pessimists to be comfortable that they were 'right', and now move on to start predicting the end of the world, a three-year hosepipe ban, and the return of Elvis Presley on his 80th birthday from his trip to Mars." said an official spokesman.

"They wanted double dip. They got double dip. Even Macaque can't be predicting treble dip" said Gaz Humping, an Estate Agent from Crewe.