Comments on: Economists Predict House Price falls of 20% http://www.mortgageguideuk.co.uk/blog/uk-housing-market/economists-predict-house-price-falls-of-20/ Simplifying Finance, Housing and debt Wed, 10 Mar 2010 10:45:59 +0000 http://wordpress.org/?v=2.9 hourly 1 By: tony http://www.mortgageguideuk.co.uk/blog/uk-housing-market/economists-predict-house-price-falls-of-20/comment-page-1/#comment-2121 tony Mon, 16 Mar 2009 12:12:09 +0000 http://www.mortgageguideuk.co.uk/blog/?p=277#comment-2121 I predict that this economy will fall much further yet... There are many reasons for my prediction but here is a big one... The FSA is talking about having new mortgage regulation (which is good practice but too late coming, it's the right solution at the wrong time) that limits people to borrowing no more than 3 times income with at least 5% down. Well, With the average household income (this is assuming your free of other debts too) being just under 30K per year, The average family will only be able to afford (with 5% down) a £90,000.00 house!.. The average house price is a around £160,000. See the problem??? As a result the housing market will languish until property looses about 45% more off current values! At which point people can afford to start purchasing property again. I predict that this economy will fall much further yet… There are many reasons for my prediction but here is a big one…

The FSA is talking about having new mortgage regulation (which is good practice but too late coming, it’s the right solution at the wrong time) that limits people to borrowing no more than 3 times income with at least 5% down. Well, With the average household income (this is assuming your free of other debts too) being just under 30K per year, The average family will only be able to afford (with 5% down) a £90,000.00 house!.. The average house price is a around £160,000. See the problem??? As a result the housing market will languish until property looses about 45% more off current values! At which point people can afford to start purchasing property again.

]]> By: Loai http://www.mortgageguideuk.co.uk/blog/uk-housing-market/economists-predict-house-price-falls-of-20/comment-page-1/#comment-1940 Loai Thu, 11 Dec 2008 20:08:42 +0000 http://www.mortgageguideuk.co.uk/blog/?p=277#comment-1940 I think the UK housing prices will continue to fall as long as the economy is in recession. Once the UK economy starts to recover through government intervention particularly, consumer confidence will go up again and that will at least contribute to an increase the demand for housing in the UK. I think the UK housing prices will continue to fall as long as the economy is in recession. Once the UK economy starts to recover through government intervention particularly, consumer confidence will go up again and that will at least contribute to an increase the demand for housing in the UK.

]]> By: What Do You Think Will Happen to House Prices? | Finance Blog http://www.mortgageguideuk.co.uk/blog/uk-housing-market/economists-predict-house-price-falls-of-20/comment-page-1/#comment-1477 What Do You Think Will Happen to House Prices? | Finance Blog Thu, 26 Jun 2008 10:25:22 +0000 http://www.mortgageguideuk.co.uk/blog/?p=277#comment-1477 [...] Some people believe that the above factors mean that house prices could actually fall a long way upto 30% or even 50% in real terms. Economists predict 20% fall [...] [...] Some people believe that the above factors mean that house prices could actually fall a long way upto 30% or even 50% in real terms. Economists predict 20% fall [...]

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