Economists expecting massive house price crash
December 5, 2008
Economists from a leading consultancy firm have painted a very bleak picture of the housing market a year from now, having predicted that house prices are set to continue plummeting, and that in a year’s time house prices could be around 35 percent lower. This, said the economists from Capital Economic, would make this the worse housing crash in the history of the nation.
One official from the company stated: ‘The sheer speed of adjustment is causing alarm. While a period of falling house prices will inevitably be painful, we believe that the quicker house prices return to fair value, the less damage the housing market correction will do to the wider economy.’
Another official stated: ‘With more base rate cuts on the horizon, which in part are intended to reduce the burden on household finances, we could find ourselves in a situation where the Bank of England’s decisions on a rate cut will have little or no bearing on the majority of families’ mortgage outgoings. It could ultimately result in an increase in repossessions.’
An economist from Global Insight said: ‘Housing market activity and house prices seem poised for further weakness as the fundamentals remain largely unfavourable.’
Written by Peter · Filed Under News Mortgages
The UK is undergoing a change of economic identity. Away from the aspirational Thatcherite 80s ethos of small business owners, independent suppliers and home owners (’Essex man’) etc towards a New Labour neo-soviet post 1997 ethos which is, for most people, a profoundly downwardly mobile experience. Where a small elite in business, government & banking own and control most of the assets which are run by cheap highly motivated labour often imported from the developing world & eastern europe. Meanwhile the unemployable native population are slowly turned into a massive unskilled & resentful underclass.