Citigroup predicts 10pc fall in house prices

[Diver]

Sure. But wasn't this the case during last property only recently? What makes you think that somehow new paradigm was found during New Labour reign of tax terror that cancels out fundamental laws of economics?

What goes up, comes down - it's as simple as this. People will still have their homes (if they keep up with repayments), but they will also have negative equity until next house pricing bubble comes around.

population growth

In 2006 UK population, widely believed to be underestimated, was allowed to pass 60.5 million. The number of people living in the UK has increased sixfold since 1800 and by a more fifth since 1950, and the environmental impacts of this growth are already clear - in both the relentless development pressures on our finite supply of land
Our numbers grew by 367,339 in 2006, an increase equivalent to city larger than Cardiff. Officially projected to rise by about 0.7% a year to reach 71 million by 2031 - an increase of nearly 10 million - population growth in the UK has reached near-record levels, and growth at the current rate of 0.6% a year, if continued, would take our numbers to 100 million before the end of this century. England alone is home to more than 50 million people, making it the fourth-most densely populated country in the world with a staggering 998 inhabitants per square mile, if small city and island-states are excluded - even more crowded than Japan.

These people need somewhere to live

One simple question. are house values less now than ever before in history: in relation to average income ?

Answer = NO

Property values can never truly drop, as long as population remains constant or population increases.

[AtW]

population growth

And in the 90s, which was just over 10 years ago, there was desert in place of UK? No one lived on the same island?

Property values can never truly drop

You are DimPrawn and I claim my 5 fake pounds

You know Diver, you are a good chap, but I think you have no clue whatsoever when it comes to macro-economics. Alas people like you are in majority

[Diver]

And in the 90s, which was just over 10 years ago, there was desert in place of UK? No one lived on the same island?



You are DimPrawn and I claim my 5 fake pounds

You know Diver, you are a good chap, but I think you have no clue whatsoever when it comes to macro-economics. Alas people like you are in majority

I bought property in the nineties. Property that has increased in value approx 120% + where's the loss.

Look at the long term not the short. my investment either increase or match pace with inflation. show me where I am going wrong.

I bought a house for £60,000 in 2003 that is now worth £140,000, are property values going to drop anywhere near 60% ????? and don,t forget, I am getting £550.00 a month rent on that property. the rent has increased from £450 a month to £550 a month since 2003. the rent is not going to drop, so wheres my loss ?

[AtW]

I bought property in the nineties. Property that has increased in value approx 120% + where's the loss.

As I said - you don't understand macro-economics. Forget about your personal situation that is certainly better than with those who sucked into property market in the last couple of years - it is those people who will suffer most, however because the whole economy is now so much based on debt (thanks Gordon) it means that everyone will be affected.

I don't know how you get £550 a month on £140k property as I pay £600 (unfurnished though) for house that surely costs at least £250k, the last house where I paid £615 (I preferred it) was sold for something like £250k, and then that guy put new kitchen in and put it on market for £350k, it did not sell for 18 months now, so he dropped price, but I think it is still unsold, and if it is, then the guy is for a very tough ride

Remember .COM bubble crash? This one will be much worse because it affects so many more people. DOOMED I tell ya! Will buy more canned goods tomorrow

[Diver]

As I said - you don't understand macro-economics. Forget about your personal situation that is certainly better than with those who sucked into property market in the last couple of years - it is those people who will suffer most, however because the whole economy is now so much based on debt (thanks Gordon) it means that everyone will be affected.

I don't know how you get £550 a month on £140k property as I pay £600 (unfurnished though) for house that surely costs at least £250k, the last house where I paid £615 (I preferred it) was sold for something like £250k, and then that guy put new kitchen in and put it on market for £350k, it did not sell for 18 months now, so he dropped price, but I think it is still unsold, and if it is, then the guy is for a very tough ride

Remember .COM bubble crash? This one will be much worse because it affects so many more people. DOOMED I tell ya! Will buy more canned goods tomorrow

Oh! £550 per month is average for here

Remember, property values in South wales are far lower than in the most of England, they are also far more stable. a few percent decrease in value on a house under $150,000 in Wales is not the total disaster that it would be on a house in London at £350,000

[AtW]

I like Wales. If your house overlooks Rhossili Bay then I will buy it off you for £30k

[Diver]

I like Wales. If your house overlooks Rhossili Bay then I will buy it off you for £30k

In Wales if my house overlooks Rhossili bay, I want to live there myself pal

[AtW]

In Wales if my house overlooks Rhossili bay, I want to live there myself pal

Not if you can't afford the repayments

[Diver]

Not if you can't afford the repayments

Don't need to take out a mortgage

[Diver]

Off to bed now, have to be up before 5 AM

Goodnight AtW