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UK Property Market News
Housing Minister tells Downing Street Housing Market to fall ´at best´ 5 - 10% this year!
Sneaky Photographers snapped pictures of Housing Minister Caroline Flints´ speech notes on the housing crisis as she entered Downing Street.
There was little else revealed, except the usual ministeral ´stating the blinding obvious´.
However, she did note that ´repossessions´ were currently only a third of the level seen at the height of the last property crash in 1991, suggesting everyone should keep it in perspective.
Other commentators (Jan Luthman of Walker Crips Asset Managers) point to ´Repossession orders´, which are now at 66% of the number at the same point 1991. Whislt repossession numers are 36% of the peak in 1991.
(Oyster Comment: Important to read the language used, saying ´since the last property crash´ indicates we are in a property crash? Plus, comparing todays ´repo´ numbers to the worst point since god knows when, and saying we should keep ´perspective´, is a bit like saying only 100,000 people killed in Myanmar (Bhurma) is less than 2% of of the number killed during World War 2! We suggest Mrs Flint can tell the estimated 45,000 homeowners (CML estimate) who will have their properties taken away and sold off at auction this year, to keep it in perspective....)
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Bank of England hold Interest rate at 5.00%.
Good news for the economy overall, as a drop could have further confused the markets.
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Inside Track into Aministration
Britains Largest Buy-2-Let Advisor Finally Out of Business.... More
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NEWS- UK House Prices Could drop 30% !!
Monetary Policy Committee (MPC) member David Blanchflower said such a fall would restore the market to a "more sustainable" house price-to-earnings ratio.
(Oyster Comment: If members of the MPC are now publicly discussing this scenario without rubbishing it, then perhaps we should take notice? You have been warned.) See UK Property Index Page
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Funniest/Most absurd Quote of the current Credit Crisis:
Chancellor Mr Darling speaking about the recent interest rate cuts told the BBC:
"What we are saying to banks is you have got to help people as well....If you can pass on those interest rate reductions, if you can help homeowners, help businesses, that will help all of us get through a very difficult time."
(Oyster comment: He´s kidding right?)
But the BBA spokesman said: "It´s not quite as simple as that, I wish it was."
(Oyster comment: It never is with Banks)
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Buy-2-Let Mortgage Availability Drops 85% in a Year
According to comparison website ´moneysupermarket.com´ Buy-2-Let mortgage products are being pulled at an unpresidented rate. Just over a year ago, there were 4025 Buy-2-Let options available, there are now only 674, a drop of 83.5%, with almost 600 pulled since March 31.
This is a clear indication the Credit Crunch is here and directly effecting the housing market, the research also suggests a 5% increase in potential renters coming into the market.
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Capitol Economics (March 28th) - Those cheery folks at CE are saying it is "entirely plausible" UK property values could fall by 25% over the next 2 years.
(Oyster comment: Roger Bootle of CE, recently came out with one of my favourite comments in his article in the Telegraph, when considering the ´housing shortage´ in the UK; "A shortage of houses at what price? Without concern for price there is a shortage of Rolls-Royces. What matters is not what quantity or quality of housing people airily say they want or need but rather what they are able and willing to pay for."...... I couldn´t have put it better myself.)
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The National Association of Estate Agents Peter Bolton King, Chief Executive, said: "The housing market is in a tricky situation, people are losing confidence because they are unable to secure mortgages - especially first time buyers, who are also being scared off by the feeling of instability."
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Jan 08- Council of Mortgage Lenders (CML) believe repossessions could reach 45,000 this year alone.
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Pain In Spain
How Britains´ economy effects Spains property market
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Jan 08 - The Financial Times/Acadametrics House price index for January found that prices rose 0.1% in January, whilst on an annual basis, prices increased by 6.5%, down from 7.4% in December and the lowest annual growth rate since July 2006. (Oyster Comment: This indice uses total Land Registry data, which we all know is out of date, however, this index might reveal a more accurate picture retrospectively than some of it´s competitors.)
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