Tuesday, October 12, 2010

UK house prices to fall significantly

Taking all of the tax rises and the Bank of England threats to cap mortgages and the cuts announced, my view is that house prices will fall 50% from current levels.
This will hit the market significantly, because of the negative equity to a huge percentage of House owners,
there will not be any movement. Not only that but the banks will refuse to lend money to people to maintain their house, so small skilled workers will lose work.
Again I repeat this will eventually need a war to get out of the spiral!

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