British house prices tumbled at a record 16.1 per cent in November, marking the sharpest drop in property values for a quarter of a century.
Figures released this morning by Halifax revealed that prices fell 2.6 per cent in November compared to October, and are now 16.1 per cent lower than in November 2007.
The year-on-year decline is deeper than falls recorded during the last recession in the early 1990s, and is the biggest drop since 1983.
The shock fall has emerged just hours before the Bank of England's Monetary Policy Commitee is expected cut the interest rate again, after last month reducing borrowing costs by 1.5 per cent to 3 per cent.
Howard Archer, chief UK and European economist at IHS Global Insight, said: "Ongoing very tight credit conditions, still relatively stretched housing affordability on a number of measures, faster rising unemployment, muted income growth and widespread expectations that house prices form a powerful set of negative factors weighing down on the housing market."
The average price of a house in the UK is back to the July 2005 level of £163,445, but this is still 124 per cent higher - or £90,000 - than the figure in November 1998.
Mr Archer said Halifax's figures placed further, last-minute pressure on the Bank to deliver a large cut in rates today.
IHS Global Insight predicted that interest rates would fall as low as 0.5 per cent in the first half of New Year, and could be reduced even further.
But Mr Archer added that: "...it is highly questionable how much of further interest rate cuts by the Bank of England that mortgage lenders would pass on."
http://www.timesonline.co.uk/tol/money/property_and_mortgages/article5284863.ece
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7 comments:
GOOD
GOOD
04 December 2008 11:50
Why is it good?
This article was written a few years ago but the last paragraph may be true.
The trigger for action
By Dissident Congress
We are convinced that there is not going to be an uprising by the masses against this corrupt government unless there is a house price crash on a scale that reverts house prices to at the most what they were in 1999/2000ish. It is well known that Labour tries to pacify the public with crap on TV like Big Brother and Eastenders, but it isn't so well known that Labour do everything in their power to make house prices rise faster than inflation to give homeowners a feel good factor. This feel good factor of rising house prices is highly effective at counteracting many of the other problems in this country to the point where few people give a damn about anything apart from how many thousands of pounds more my house is worth today compared with last year. Does anybody remember the early 90s when house prices plunged to rock bottom levels we saw road protests and numerous other public demonstrations? Events like these are nowhere to be seen today.
Sam Swerling mentioned that the public will not take to the streets unless another recession happens. He isn't strictly true because a recession started in Britain around 2004ish and almost no sectors of the economy are doing well apart from public sector nonjobs and property. The past few years have witnessed hundreds of thousands of job losses and industrial closures ranging from car factories to call centres. The IT job market is dire and highly skilled programmers and electronic engineers are having to take dead end jobs in Tescos or Starbucks. However, house prices march onwards and there is no sign of a crash in sight even with two shock interest rate rises. The British have traditionally seen house prices as the barometer of the economy. When the economy does well then house prices rise, and when the economy does badly then house prices fall. The days of this barometer are over because house prices are now dictated by supply and demand. Labour creates extra demand for houses with its open doors immigration policy and generous services to (bogus) asylum seekers including giving them council and housing association property originally built for British people. A tax and financial system that favours buy to let investors, coupled with Gordon Brown's pension crisis, also adds to the demand because houses are now seen more as financial investments and future pensions rather than places to live.
House prices are the trigger that patriots should be looking at. Issues like immigration, political correctness, asylum, Islam, the economy, civil liberties, crime, and stealth taxes mean nothing to most people as long as their house is rising in value. Until house prices really do crash, expect to see the BNP as nothing more than a protest vote, and no sign of anyone taking to action against the corrupt dictators running this country.
I said good because high house prices just like easy credit has fueled the feel good factor just as over priced house and the above have fueled the creation of non jobs in the service sector and has fueled the need for moor immigrants so when house price's fall no easy credit the non jobs should go as people tighten there out goings and hopefully the need for moor immigrants will diminish with a lot of the colored immigrants returning to there homelands or if not then civil ware will be moor likely with immigrants in the firing line as they occupy houses and jobs etc that white family's WHO have lost there house's and jobs will start thinking that should be my house and job.
Remember that millions of pounds worth of goods are stockpiled along with thousands of unwanted cars also stockpiled at the docks that have to be sold or returned or sold off at cost price,so it's bargain time chaps if you have cash at hand we have three weeks to go before XMAS so hassle the shops as they are all desperate to turn over stock or they will go under.
Big breadwinner hog.
Yep. The only thing that will cause the middle class to rebel is pain in the pocket.
A 16% drop in 2008, and prices are still falling.
Reasons for people bailing out of property and bailing out of the UK ('white flight') include the terror and imported horrors practiced by the multi-million member "multicultural minority" of colonising Asians and Blacks.
No one wants to buy houses in the UK anymore since NewLabour's "immigration" policy has rendered this nation into a third world doss house for coloured welfare tourists.
Why save up to buy a house when NewwLabour gives away mansions in London free to coloured asian or black welfare dependent piles of social dross. It because of that racial piss take by NewLabour that the indigenous white natives in this nation, now places no value on investing in housing.
Ogmios
Don't forget that dishonest and corrupt Asian property investors have been buying up thousands of houses to rent out to recently arrived immigrants and bogus asylum seekers. I hope this house price crash leaves these property investors in financial ruin.
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