State of the UK housing market - Doom level: ATW raises eyebrow

[scooterscot]

I was going to put this in my 'stock market crash thread' but I thought it deserved its own special discussion.

The UK market is experiencing a shortage of houses at the moment, which has led to a higher demand. A demand which has had a positive impact on the big house builders of the UK. Several of them have reported a rise in sales due to the healthy demand for new homes. Amongst others, is the industry giant Taylor Wimpey, which saw a 5% increase in completed houses in 2017 (14,541) and average prices rising to 3%.

source: The biggest house builders in the UK - GenieBelt

All sounds very bullish... the government is spouting the same nonsense. Yet three of the largest builders of houses in the UK collectively show a drop of 20% in share price this year alone. Mother of all crashes is on the way folks. Don't have a crystal ball, can't say when exactly, but watch out when those interest rates rise... that'll be a strong indicator.

How deep will the correction be? If house prices are to show a meaningful ratio between earnings and cost of ownership, 40% correction be a start. 60% at worst.

[shaunbhoy]

Keep on dreaming Jellyhead!

[scooterscot]

Sleep is commercial, life is just a dream.

[AtW]

I am prepped

[cosmic]

Spoke to a mortgage broker last week. He said he can see a correction coming that is being blamed on brexit but he said that brexit or no brexit it's gonna happen and he can see it on the system that he uses. He thinks a correction of 10% is about right. He said having a 40% is highly unlikely as the banks are still lending at good rates... He said if it was going to 've bad the first sign is the banks increasing rates and limiting lending which they ain't.

[AtW]

He said having a 40% is highly unlikely as the banks are still lending at good rates...

Yeah, and the banks never got it wrong

[cosmic]

Yeah, and the banks never got it wrong

The banks haven't got it wrong. They all knew what was going on and knew the gov would bail them out giving them more money.

Had a friend work in a bank (halifax) they have an account and he said it's value was 99999999 and never goes up or down meaning it's infinate amount. So saying the go bankrupt is total b.s. as they make money through dept because that is how money is made into existence.

[Troll]

Fook - I appear to have wandered into housepricecrash.co.uk

[AtW]

The banks haven't got it wrong. They all knew what was going on and knew the gov would bail them out giving them more money.

Had a friend work in a bank (halifax) they have an account and he said it's value was 99999999 and never goes up or down meaning it's infinate amount. So saying the go bankrupt is total b.s. as they make money through dept because that is how money is made into existence.

That’s sasgurus account

[BR14]

[QUOTE=scooterscot;2593917]I was going to fart but I thought it deserved its own special discussion.


no. it doesn't