House prices 'could drop another 55%' and leave Britain bankrupt

House prices 'could drop another 55%' and leave Britain bankrupt
By James Chapman from Daily Mail


Financial analysts warn that house prices could fall a further 55% - leaving 6million Britons in negative equity

House prices could slump by another 55 per cent, a respected City forecaster warns.
It also predicts a deep recession lasting throughout next year and a 'very real probability' that Britain will go bankrupt.
The report leaked yesterday from financial analysts Numis Securities says that the collapse in house prices is not 'anywhere near over'.
They have already fallen 21 per cent from their peak, but the report says they will slump further by up to 55 per cent if the over-correction in prices is as bad as in the early 1990s.
That would leave many millions of Britons in negative equity - when their house is worth less than their mortgage.
Yesterday also saw Alistair Darling warn that there could be 'no instant remedy or overnight solution' to the economic crisis.
The Chancellor used a speech to prepare the ground for slashing growth forecasts that now appear wildly optimistic.
In November, he had predicted that the economy would shrink by about 1 per cent this year, before growing by about 1.75 per cent in 2010.
He is expected to tear up those predictions in next month's Budget.
Mr Darling said: 'It is crucial to remember that we are dealing with a constantly evolving problem - making life difficult for every country.
'Since November, we have witnessed a collapse in world trade not seen in generations and a much deeper and more widespread global recession, with every country affected.'



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I hope people dont get silly and start selling their houses. They have physical welath there and with the pound losing its sterngth all the time, I'd say having physical wealth is better than having cash in the bank...

Its gits like him who cause everyone to panic. If on the news they said everything was fine and house prices were going up everyone would be buying houses. Soon as somebody says that in national press everyone waits. Its bollocks as I ain't going to sell my house for 50% what I paid and I expect not many people will.

If they do drop 50% I will buy another one and wait for it all to go back up.

Yep papers are feeding the fear for sure...

What makes me laugh is everything that was privatized is now being nationalized and state owned again (but we pay for it yay yay yay!!!) and come in 10 or so years it will all be sold off again and privitized. Hmm is there a cycle going on here....lol

The whole system is a fraud and nothing can be done, this was meant to happen.
The dollar will crash at some point I'm positive and a new currency will come out, the middle east will be in turmoil with its crude oil prices, and billions of dollars that countries have reserved will be worthless.

lol...but who cares lets try and enjoy life...

anyone got a spare room, might have to sell my flat but shhhhhhh, dont tell my misses,lol

kingofsx wrote:anyone got a spare room, might have to sell my flat but shhhhhhh, dont tell my misses,lol

no offence to n e one this may affect but i hope it does coz i could do with buying one while its this low

hi well i live in suffolk, and there are loads of SOLD boards around now, stuff thats been on the market in some cases for a year or more now SOLD, all kinda things from flats to big 4 bed detached homes........ think bottom may have been reached around these parts

I be surprised if its rock bottom yet.
The demand for houses is high here and probably only reason our houses economy hasnt gone the way of America.
If it can keep stable for another year than it maybe fine, but if it starts to tumble a little it could become a snowball. Theres a long way to go (imo) before house market is totally safe.
With house repossessions going up ten fold this could cause another fall.

Its laughable they print garbage like that. House prices drop 55%!!

As a house owner there is no way in gods earth would I sell my house for 55% less than I paid for it. Thats just mental, especially when you know it will go up eventually and beyond what you paid for it.

Houses around me have hardly changed at all in the last year as I have been looking at them. A house similar to mine in the same street is up for sale 20 grand MORE than I paid 18 months ago.

I wouldn't mind them dropping 55% as I'll buy another 2 and sell them later!!

I have a few friends waiting till it bottoms out, thing is they will probably miss it as I know when somebody finally says its starting to go up loads of people will rush out to buy a house.

Theres a lot of factors taking place at moment.

a) unemployment is increasing at a big rate this has a effect on house market.

b) Eu laws, economy, lisbon treaty, euro. We are joining Eu soon our houses cost way more than abroad we need to see parity with EU.

c) value of pound is decreasing, inflation can all have an effect on market.

d) the mega rich and market experts are selling not buying. This is worrying do they know something? People buying are people who are trying to make a quick buck as they missed out last time or first time buyers who have saved.


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Thing for prices to shoot up.

UK has shortage of houses and the building industry is going tits up so few houses are getting built or even finished.
This is keeping prices from tumbling.

Thing is if we do hit more economical problems, and inflation gets worse people will start to sell assets that usually includes houses so again it could cause more problems.
In my town their are a lot of houses up for sale and most are not sold and most houses have lost 10-20 grand off price from a year or 2 ago.

Its really hard to say whats gonna happen, if you believe the economy has had the worst of this recession then now is time to buy. If you believe the worst is yet to come dont go and buy a house unless you have the money saved and was looking at buying and not making money.
Its a dangerous market and its not even end of year, come end of 2009 thats when businesses reflect on the year.

Way I look at it I'm paying for the roof over my head and will continue to pay my mortgage, If the house price drops just means I may be staying in the same place for a bit longer than planned but the main thing is I have somewhere to live and things will turn round eventually.

Most important thing Bennett. Be happy and play with the balls you can handle (wink)...

I never buy anything looking to make money, I buy for my and others pleasure and reassurance.

I know people who live off of making money from money and gambling on shares, ideas, businesses or investments. They never seem happy people...