House prices fall in UK
House prices continue to fall in UK By Chris Giles and Delphine Strauss Published: March 28 2008 20:59 | Last updated: March 28 2008 20:59 House prices will fall this year, the Nationwide building society said on Friday, becoming the first big mortgage lender to forecast a drop in the housing market after its figures showed prices declining in March for the fifth successive month. The gloomy outlook on house prices coincided with new data showing consumer confidence at a 15-year low and weaker household spending, raising the risk of severe economic slowdown. EDITOR’S CHOICE House price growth falls to 12-year low - Mar-28Euro rallies on upbeat sentiment - Mar-28Mortgage rates lifted as lenders feel pain - Mar-27Interactive house price map - Mar-07UK housing market balanced on knife-edge - Mar-07B&B seen as most vulnerable - Mar-07Annual house price inflation fell to 1.7 per cent, its lowest in 12 years, Nationwide said, and unless the housing market does better in April than this month, the inflation measure will dip below zero in a month’s time. With Britain facing the likelihood of house prices falling year- on-year and mortgages becoming harder to acquire, the prospect has risen of a US-style vicious circle of falling prices, ever more pessimistic expectations, falling demand and even more cautious lending. Such a scenario, alongside a sharply slowing economy, sent sterling to a new low against the European single currency on Friday. The value of one euro rose above 79p ; it has risen by almost 18 per cent against sterling since the credit crisis started last summer. Official figures published on Friday also showed strains in the British economy. Household spending grew by only 0.1 per cent in the last quarter of 2007, the Office for National Statistics said, revising down earlier estimates, and so great were losses among foreign-owned banks in the City that the current account deficit contracted sharply from a deficit of 5.5 per cent of national income in the third quarter to 2.4 per cent in the fourth. Foreign banks’ profits matter for the balance of payments because writedowns on business done reduces the cash flowing abroad from London. Separate figures from the research group GfK NOP also showed consumer confidence fell in March to the lowest level since 1993. Although economists now think it likely the Bank of England will cut rates in April, the Bank’s task is made more difficult by a worldwide rise in inflationary pressure. On Friday, Germany’s inflation rate rose from 2.9 per cent in February to 3.2 per cent in March, while Japan’s inflation rate hit a 10-year high of 1 per cent in February. Copyright The Financial Times Limited 2008
I am always around Britexpat so feel free to ask away!
Whatever you want is in reach if you plan it right. Houseboat retirement can be yours!
Maryum : Umm Hasan bint Abdullah Alshabrawishi
Wouldn't mind some tips sometime.. I am hopeless at this soret of thing.. I go with my heart..
Always wanted a houseboat.. Will hopefully get one one day..
Brit expat I have a sharp eye for property. Some property can go up and some of it is just too overpriced for its own good.
In any market there are deals to be made. It is all about the right property at the right time.
I have thought about Florida property because it really is a great holiday location. Cheap as chips at the moment if your buying in cash. One thing that puts me off is that I know nothing of the different areas.
Maryum : Umm Hasan bint Abdullah Alshabrawishi
I might be interested jasmine. pm me the location and we'll have a chat. Dorset is a beautiful part of the country.
Maryum : Umm Hasan bint Abdullah Alshabrawishi
Where abouts in Dorset ??
Thde concensus is that property will pick up again in 2010..
So, if you can ride it out..
Well we have just been back following the buyer of our flat pulling out. In 5 months, our flat is now being marketed at 20,000 GBP less than in Jan 2008. Anyone lookin for a second home in Dorset? Negative equity is looming...
PH, a lot of canadians own houses/apartments in Florida..they go to live there during the winter time, when it's too cold in canada...and they rent them out to the tourists during the summer time..i think it's a good deal.. i was thinking of buying some apartment there as well...i am going to canada this weekend, i will check the situation...
I really hope the prices drop 25%, then perhaps my son can buy his own place and move out:)
Took my mother in law 3 years to sell her house before moving into the new one. She had to take 50k off the asking price. The neighbors next door have the same exact house inside and out just better decoration on the walls and furnishing for 35k more than what my mother in laws house was being marketed. They still have not sold yet!
Estate agents have put high price tags on houses and the market is now weeding out all the over priced shitholes!
I hope your ex will be able to handle things. It must be difficult with only one income rather than two Torque!
Maryum : Umm Hasan bint Abdullah Alshabrawishi
As part of my divorce I signed over our house to my wife.
She now can't afford the mortgage on her own & is asking me if I want to buy it at mortage value only....& she'd be my tenant.. :-$
I'm sorely tempted, but think the market will fall further yet & as I still want to have a base in the UK (have for a very long time..) I'd rather hang fire & see if I can bag a better bargain.
She tried to sell the house (which is a nice 3 bed detached in a good area) & couldn't after 8 months, but was offered some silly figures by cash buyers, knowing the market is on its ar*e & can take the pi** big time.
The UK still a good place to visit.... ;-)
Torque
Canadian houseprices have done much better and the canadian dollar is still strong. Don't worry too much about up there as it should be fine. The only concern being lack of tourism from the US due to the credit crunch.
Yeah.. but who wants to live in florida.. Its so hot and humid and they have too many bugs! Not to mention the american hillbilly factor down there.
I'm waiting for the uk so I can invest my dollars over there.
Maryum : Umm Hasan bint Abdullah Alshabrawishi
i need more infos about "bloody country"!
a cha!
Florida.. Would love to live there, except I don't have any plaid stretch trousers ands am not a geriatric yet..
hope it won't touch canada... friend of mine told me that ppl urgently selling houses in canada in order to buy properties in USA, specially in florida, for much lower prices.. he said, some properties in florida have dropped down to 70% of the initial price...
lol britexpat
I know it is crazy. People who only made 25k a year and bought a few houses got too wealthy too fast. Leaving the rest in the dog basket living next to pizza takeaway and buying council homes on 60k a year.
I hope it goes down by at least 25%.
I am here in california and a house that would have sold for 600k is now selling at 400k and what happens to america has a history of crossing the pond and happening in the uk.
LOL Supernurse she'll come around!
Maryum : Umm Hasan bint Abdullah Alshabrawishi
Great news....
I would like the prices to fall a little more.. People have made obscene profits..(Not me)
A friend bought a house in Cheshire ten years ago for 475K.. Just sold it six months ago for 2.7 million..
SN: You turncoat... Blighty is still better than most places in the World..
Hallelujah...
Hallelujah...
yep I'm a nurse, spose it depends where you work Jasmine. the NHS is disgusting compared to here! PH You have a point about the northern rock being safe! Some of the UK is ok I spose, I really should be a bit more patriotic but I can't build up any enthusiasm!
At least you know northern rock is safe supernurse.
My mother in law just bought a property last summer (against my advice) and I am sure it is going to lose £50k at least.
BTW UK is a great place! People just spend too much bloody money on houses! Oh and the weather... nuff said!
Maryum : Umm Hasan bint Abdullah Alshabrawishi
Are you a nurse? I am thinking about working here but trying to find out about the conditions first. Still, probably less primative than NHS..
Oh god, good luck with the sale! We're still sending money home to cover mortgage which has just gone up (With Northern Rock) of all people! Waiting for market to get better before selling.....
It is a bloody awful place, I agree.
Mortgage lock in period expires this month, payments will double. Selling as a matter of urgency and losing about 20,000 pounds (about 140,000QR)Still, at least we have a buyer, keep your fingers crossed, hoping to complete next week.
*goinf*??going even..
it was inevitable that was goinf to happen...only a matter of time before the market crashed!!Bloody awful country....