Slump?

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rat's picture
rat
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Joined: 16-10-03
Jul 22 2006 22:58
Slump?

Could there be a slump in the housing market?

I was looking for info about the early nineties housing/debt crisis in the UK and found this site.

http://www.housepricecrash.co.uk/index.php

A load of bourgeois bullshit I know, but they compile news around debt, interest rates, the housing price bubble, repossessions and the like.

Massive personalised debt in Britain?

What’s going to happen when they bang up interest rates a few times over the next couple of years?

Plenty of proles are going to get it in the neck!

Or maybe it’s possible to ditch your debt?

Daniel.

Lazy Riser's picture
Lazy Riser
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Joined: 6-05-05
Jul 22 2006 23:16

Hi

Definitely. In rural and coastal areas housing is fives times more expensive than, and wages two thirds of, the national average. The housing crisis is so acute that the government is subsidising “affordable” homes. That’s going to put serious downward pressure on house prices and rents, and I expect a significant adjustment in the next two years.

I’ve heard a rumour from local estate agents along those lines and, judging by the number of properties that have just come onto the market to try and beat the oncoming big sell-off, it looks like it’s spreading.

What with the number of people with loans secured on equity in their home, this could cause some difficulties in the event they need to sell…

http://en.wikipedia.org/wiki/Negative_equity

Having said all that, predicating slumps in capitalism is a bit like predicting sunrises.

Love

LR

Hilarious…

http://www.parkerchris.pwp.blueyonder.co.uk/vocationvocationvocation.html

pingtiao's picture
pingtiao
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Joined: 9-10-03
Jul 23 2006 08:27

lazy, can you show me a source for that housing 5 times the average point?

jef costello's picture
jef costello
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Joined: 9-02-06
Jul 24 2006 09:15

Well I was in an estate agents yesterday and there were at least three reposessions in a rather small area of Walthamstow on the market. (about 4-500 houses) But that could just mean some 'property developer' has hit negative equity, which is always nice to see. I'd like to see a house price crash, not yet though, I'm out of the UK property market for a year.Lazy, the new homes thing is not going to work to reduce prices and rents by much, as their plans won't even replace the council houses they've sold off over the last few years. Of course if house prices do actually start to fall and the speculators get nervous and start dumping then there could be a crash, but due to levels of consumer credit the government would be crazy to let that happen. Unless large amounts of debt are owed to foreign creditors and could be written off... That might actually give a nice boost to the economy.