Though I know we shouldn't be feeling in any way happy about the demise of the UK economy those going back can feel a little cheerful about getting back on the ladder...
I remember my parents were on the other end of this back in the 1990's when they saw their property tumble 40% so anything I can claw back next year will be a bonus. What goes around comes around.
It's not a demise, it's just a correction of years of overflated house prices....the UK economy will remain strong against most of the world economies.
Hi there, I have notice that no-one has mentioned the fact there is a shortage of housing in the UK. This is expected to rise in the foreseeable future due to population increases.
Personally, I believe there has to be small slump in the market because house prices were just going plain crazy. But I do think it effects certain parts of the UK the South East in particular more so than other areas. Plus it depends on what type of property you are selling.
Unfortunately, until the banks start offering first time buyers a decent deal then we will continue to have problems with selling property. Majority of people are only reducing their price to generate interest in their property because they want to sell asap. If the banks were offering decent deals I doubt you would be seeing such big drops in house prices.
So, whilst this might be sounding good for those wanting to come back from oz, and get back on the UK property ladder, you have expect to be hit with crap interest rates and very high bank charges for lending you the money.
Hi there, I have notice that no-one has mentioned the fact there is a shortage of housing in the UK. This is expected to rise in the foreseeable future due to population increases.
Personally, I believe there has to be small slump in the market because house prices were just going plain crazy. But I do think it effects certain parts of the UK the South East in particular more so than other areas. Plus it depends on what type of property you are selling.
Unfortunately, until the banks start offering first time buyers a decent deal then we will continue to have problems with selling property. Majority of people are only reducing their price to generate interest in their property because they want to sell asap. If the banks were offering decent deals I doubt you would be seeing such big drops in house prices.
So, whilst this might be sounding good for those wanting to come back from oz, and get back on the UK property ladder, you have expect to be hit with crap interest rates and very high bank charges for lending you the money.
If only we had a crystal ball...........
Mandisfam
I'm paying 9.6% interest on my Australian mortgage so I doubt it will be worse than that in UK..
The Guardian is obviously on drugs, but that's nothing new for the Guardian, its normally smoking something!
rising population and limited land will mean housing prices will always rise in the long term, the trick is to ride out the slumps.
Its my guess that this slump will only last a year, ie this years housing market is dead, come next year we will see the buyers who have sat on their butts this year decide that they need to get on with life and start buying again.
The trouble is that everyone remembers the last crash, but have forgotten that there was a lot more going on, gazumping was stupidly out of control, the years beforehand, which rocketed prices out of control, and then we were hit with an enormous recession.
This time round is completely different, the biggest problem we have is a sensationalist press wo love nothing better than some doom and gloom
The Guardian is obviously on drugs, but that's nothing new for the Guardian, its normally smoking something!
rising population and limited land will mean housing prices will always rise in the long term, the trick is to ride out the slumps.
Its my guess that this slump will only last a year, ie this years housing market is dead, come next year we will see the buyers who have sat on their butts this year decide that they need to get on with life and start buying again.
The trouble is that everyone remembers the last crash, but have forgotten that there was a lot more going on, gazumping was stupidly out of control, the years beforehand, which rocketed prices out of control, and then we were hit with an enormous recession.
This time round is completely different, the biggest problem we have is a sensationalist press wo love nothing better than some doom and gloom
Couldn't agree more.
Announcement on news last night that there will be fewer houses built in the UK this year than at anytime since the war and the waiting list for council houses is growing by an enormous rate per day. Major construction companies are laying off staff all over the country, but it's still not as bad as the 90's.
The Guardian is obviously on drugs, but that's nothing new for the Guardian, its normally smoking something!
rising population and limited land will mean housing prices will always rise in the long term, the trick is to ride out the slumps.
Its my guess that this slump will only last a year, ie this years housing market is dead, come next year we will see the buyers who have sat on their butts this year decide that they need to get on with life and start buying again.
The trouble is that everyone remembers the last crash, but have forgotten that there was a lot more going on, gazumping was stupidly out of control, the years beforehand, which rocketed prices out of control, and then we were hit with an enormous recession.
This time round is completely different, the biggest problem we have is a sensationalist press wo love nothing better than some doom and gloom
The slump they are predicting will go on for at least the next 5 years.... they are predicting house prices will drop by about 30% to reach there true value....then they will rise very slowley and nowhere like as fast as they have in the last 10 years.
It's not a demise, it's just a correction of years of overflated house prices....the UK economy will remain strong against most of the world economies.
LOL! That has got to be the most entertaining post I've seen on this site for a while.
The UK economy is in dire straits, 10 years of mismanagement is finally coming home to roost. Unlike most economies around the world the UK government has spent & spent & spent while the times were good and now that things are turning bad has no room to play with the public finances.
Unemployment is rising, inflation is getting out of control, house prices are falling, the currency is weak & the country has no real industry (other than the city of London) to speak of. Public sector workers will soon be on strike as they see their meagure pay packets eroded by below inflation rises.The windfall of the North Sea oil reserves (which are coming to an end) has been wasted. Even the poles are leaving as the currency falls and the prospects dry up.
Due to the poor state of the countries finances there is no possibility of tax cuts like we've seen in the US. The only weapon to fight the upcoming battle is interest rates and the next direction they are going is up.
Without London as the finance capital of world the UK would have nothing. We make nothing in this country anymore & any company that is service based could up sticks and move elsewhere. We've already seen the start of this with Shire moving offshore to reduce it's tax bill.
Continental Europe is in far better shape than the UK which can be seen reflected in the strong EUR. The UK economy isn't strong now so I don't see how you think it can 'remain strong'!
House prices will fall at least 25%-30% over the next 3 years back down to long term average price and tens of thousands of people will be trapped in negative equity.
The only bright spot on the horizon is the benefit that London will get from hosting the Olympics but then again that will cost at least twice what was originally budgeted and you can pretty much guaranteed it won't all be finished (or work) in time. And after it's finished we'll be lumbered with a huge stadium that won't get used and will cost us millions to maintain or it'll be flogged off to the private sector for a song who'll then turn it into a football stadium and make a mint.
Yes my friends what we are seeing now is only the tip of a very large iceberg that will see the UK fall into recession for many years to come.
__________________
Happiness is a path not a destination - Silk Road fortune cookie
LOL! That has got to be the most entertaining post I've seen on this site for a while.
The UK economy is in dire straits, 10 years of mismanagement is finally coming home to roost. Unlike most economies around the world the UK government has spent & spent & spent while the times were good and now that things are turning bad has no room to play with the public finances.
Unemployment is rising, inflation is getting out of control, house prices are falling, the currency is weak & the country has no real industry (other than the city of London) to speak of. Public sector workers will soon be on strike as they see their meagure pay packets eroded by below inflation rises.The windfall of the North Sea oil reserves (which are coming to an end) has been wasted. Even the poles are leaving as the currency falls and the prospects dry up.
Due to the poor state of the countries finances there is no possibility of tax cuts like we've seen in the US. The only weapon to fight the upcoming battle is interest rates and the next direction they are going is up.
Without London as the finance capital of world the UK would have nothing. We make nothing in this country anymore & any company that is service based could up sticks and move elsewhere. We've already seen the start of this with Shire moving offshore to reduce it's tax bill.
Continental Europe is in far better shape than the UK which can be seen reflected in the strong EUR. The UK economy isn't strong now so I don't see how you think it can 'remain strong'!
House prices will fall at least 25%-30% over the next 3 years back down to long term average price and tens of thousands of people will be trapped in negative equity.
The only bright spot on the horizon is the benefit that London will get from hosting the Olympics but then again that will cost at least twice what was originally budgeted and you can pretty much guaranteed it won't all be finished (or work) in time. And after it's finished we'll be lumbered with a huge stadium that won't get used and will cost us millions to maintain or it'll be flogged off to the private sector for a song who'll then turn it into a football stadium and make a mint.
Yes my friends what we are seeing now is only the tip of a very large iceberg that will see the UK fall into recession for many years to come.
Mate if you think it is bad in the UK.
Australia
...THE economy is headed for recession next year, with a 50 per cent plunge in share values.
LOL! That has got to be the most entertaining post I've seen on this site for a while.
The UK economy is in dire straits, 10 years of mismanagement is finally coming home to roost. Unlike most economies around the world the UK government has spent & spent & spent while the times were good and now that things are turning bad has no room to play with the public finances.
Unemployment is rising, inflation is getting out of control, house prices are falling, the currency is weak & the country has no real industry (other than the city of London) to speak of. Public sector workers will soon be on strike as they see their meagure pay packets eroded by below inflation rises.The windfall of the North Sea oil reserves (which are coming to an end) has been wasted. Even the poles are leaving as the currency falls and the prospects dry up.
Due to the poor state of the countries finances there is no possibility of tax cuts like we've seen in the US. The only weapon to fight the upcoming battle is interest rates and the next direction they are going is up.
Without London as the finance capital of world the UK would have nothing. We make nothing in this country anymore & any company that is service based could up sticks and move elsewhere. We've already seen the start of this with Shire moving offshore to reduce it's tax bill.
Continental Europe is in far better shape than the UK which can be seen reflected in the strong EUR. The UK economy isn't strong now so I don't see how you think it can 'remain strong'!
House prices will fall at least 25%-30% over the next 3 years back down to long term average price and tens of thousands of people will be trapped in negative equity.
The only bright spot on the horizon is the benefit that London will get from hosting the Olympics but then again that will cost at least twice what was originally budgeted and you can pretty much guaranteed it won't all be finished (or work) in time. And after it's finished we'll be lumbered with a huge stadium that won't get used and will cost us millions to maintain or it'll be flogged off to the private sector for a song who'll then turn it into a football stadium and make a mint.
Yes my friends what we are seeing now is only the tip of a very large iceberg that will see the UK fall into recession for many years to come.
so I doubt it will be worse than that in UK..
