Northern England and the price crash...

RubyShoes

I had a conversation with my mum today. She was telling me about the last house price crash. She told me that when it happened, the north was not affected, and that house prices simply stagnated, rather than dropping like in southern areas.

Is this right? I thought that it was a national house price crash? If she is right, is this likely to be the case should this happen again this time around?

Ruby
x

aqueoushumour01

i'll post in a bit.... need to consult my crystal ball first to get the answers!

Trollfever

What will be different this time is that everybody will have access to the information via the internet:

http://news.bbc.co.uk/1/shared/spl/hi/in_depth/uk_house_prices/regions/html/regions.stm

Rover

Not my personal experience of up t'North. Bought just after the peak, sold 1999 - lost 20%. Even after spending thousands on it in the interim.

However didn't matter as the house I bought in 1999 was similarly discounted. Only becomes an issue if you regard your home as an asset.

titewad_2

I live in the north and I remember prices falling.Not to the extent of the South obviously as in the nineties it was still dirt cheap compared to the south.In my town a decent 3bed semi in a reasonably nice area could be had for £45k.
£80k got you a 4bed detached on the newer posh estates on the fringes of the town.And these prices were after the boom in the late 80s.
Now You need £70-£80k for a terraced in the toilet parts of the town.

I also remember driving past the same for sale signs for upto and sometimes longer than 3 years during the 90s crash.

Shimrod

I live in Lancashire, and bought my house for £61,500 in 1996. It started on the market at £84,000 and was £65,000 18 months later when I put my offer in. So I'd say it definitely hit Northern England. I watched the market for 2years before I bought, most houses in the estate agent adverts had 'reduced' flashed across them.

nearlyrich

I bought a house in Lancashire in 1982 for £8500, in 1990 it was valued at £40000 which was the figure we used to pay off the ex, I eventually sold it for £36000 in 1993.

This house had been on the market for over a year at £79950, it was reduced to £77000 and then reduced by another £10k the weekend we spotted it, we bought it in 1982.

Turnbull2000

Aren't 50% of North East jobs in public sector, with an even higher proportion for the female population. You'd think the region would be quite vulnerable in an economic downturn.

m00m00

my property bee stats from 3 yorkshire postcodes are actually all showing higher % of property reduced in the past week, than the 3 post codes in the East Midlands.

ManAtHome

Round my way (West Yorkshire), the only ones which didn't drop were the ones which didn't sell (or were not on the market...). Next door and one across the road both went on the market in 1992 and both made their asking prices - one in 1999, the other in 2000.

Generali

My guess is that this time the North East is going to suffer more than any other region. They have very little economy beyond what the Govt spends (IIRC, 70% of the GDP of NE England is from Govt spending) and so if the Govt has to start reducing spending the NE is going to be particularly hard hit.