Comments on: If House Prices Drop Another 40% – Who’s at risk of Negative Equity?

By: Bromoney

Bromoney — Wed, 14 Oct 2009 20:42:53 +0000

Good analysis on the housing situation.

By: Money Hyperlinks Sunday

Money Hyperlinks Sunday — Sun, 12 Jul 2009 00:57:06 +0000

[...] If House Prices Drop Another 40% – Who s at risk of Negative Equity [...]

By: Brian

Brian — Tue, 30 Jun 2009 09:46:14 +0000

The 7% to 11% figure takes the assumption that there are 10,000,000 homeowners with mortgages. So yes, 30% of the UK owns their homes outright. We know that according to the Department for Communities and Local Government a little over 8,000,000 had mortgages as of February 2008, the lowest level for 20 years. Instead of 4.5 million people selling their home, a little under two million took on new mortgages.

By: Negative equity

Negative equity — Mon, 29 Jun 2009 08:51:50 +0000

Some of us have been through this before in the 1990′s. I got out of negative equity by aggresively overpaying my mortgage so that the loan outstanding was always lower than the value of the house. It had the side effect of saving me thousands in interest payments. Eventually house prices then rose again (as they always do), so I was able to sell for more than I had purchased the property for. So a double benefit for those who are prepared to be patient.

James and Helen – the number of owner-occupiers in the UK already stand at over 70% of the adult population. I’m not sure how “many more” people will be able to get on the property ladder without getting students aged 18 to buy!!! It’s actually desirable that people in their 20′s rent – their careers are not set, they may need to be mobile and relocate. Settle down in a house in your late 20′s/early 30′s. This idea that you should be able to buy a house at age 21 is madness. Those who believe that it was possible in the past are fantasising – even as late as the 1980′s owner occupation was only in the 60 percents, and was about 40% in the 1950′s and 60′s.

By: Helen

Helen — Sun, 28 Jun 2009 16:17:34 +0000

James, why would it be good if prices rose quickly again after crashing? The whole problem began with an over inflated market. The last thing we want is prices going crazy again. Keep prices stable, with very, very steady gains in line with inflation and then many more people will be able to get on the property ladder, rather than a lucky few.

By: James

James — Sun, 28 Jun 2009 15:18:38 +0000

The quicker they do drop back down to affordable levels, which as your data suggests could well be 60% + from peak, [as I and many others have been saying for years now!!]
The better for the British economy, ALL Industry, FTB, young people, the housing market, [Quicker they fall, faster they can start to rise again]
But for politicial reasons that absolute B@@@@@@ Gordon Brown and the Labour party are keeping the UK artificially inflated, in a desperate attempt to remain in power, and damaging all of us, some of us, even more than they already have done.

Please Please Please Your Majesty, call a vote of no confidence in the parasitical cabinet, who should be sent to the tower, for the rest of their natural lives.