UK property ‘faces 90s-style meltdown’
Posted 2008-01-17
House prices in the UK are falling as fast today as they did during the property crash of the early 1990s, according to one new report. The Royal Institution of Chartered Surveyors (Rics) has said the number of estate agents reporting falling prices is now at its highest level since 1992, when Britain was in the midst of its worst-ever house price crash. Market predictions vary widely but leading industry figures such as Nationwide, Experian and Intermediary Mortgage Lenders Association are all forecasting negative growth in 2008, with the latest report from Capital Economics pegging the downturn at five per cent. And while factors such as the rollout of Home Information Packs are believed to have played a role in recent price dips, analysts say the past decades runaway house price inflation is primarily to blame. Alluding to last months interest rate cut which was intended to ease the strain on mortgage borrowers, Rics spokesman Ian Perry warned: "The Bank of England may have to cut rates further if the market is to remain stable." The governments latest statistics show that the average price of a home in the UK fell 0.8 per cent last October.
January 23rd, 2008 at 9:48 am
I think there is an element of exaggeration. Annual house price inflation is still positive and the conditions for a crash are not the same as in 1992. (interest rates much lower for a start)