Will a new recession mean even lower houseprices?

[NorthWestPerm2Contr]

Unemployment keeps rising:

BBC News - UK unemployment increases to 2.64m

Everything keeps getting more expensive and wages are either staying the same or going down.

1) Will a recession happen?
2) Will it mean lower house prices

I am only really bothered about 2) as I want to buy a house finally!

[DimPrawn]

No, house prices will not fall much in sterling terms. If you hold strong currencies or gold, then yes.

Reason? Printy, printy billions of pounds of Sterling in Feb 2012 to prop up the govt debts.

Sorry, but you've got no chance.

[DimPrawn]

'Trapped renters' may never buy - Title1

I loved this bit:

Housing Minister Grant Shapps (Tory) said: "It's absolutely right to say that the doubling of house prices in the decade from 1997 (Blame New Labour) blocked an entire generation from the housing ladder.That's why I've announced a new scheme that will mean rather than someone having to save £40,000 as a deposit, £10,000 will get them into their first home." (Do exactly the same thing and increase house prices by giving them tax-payers money)


Print money, give it to property speculators for free, is there any more blatant attempt of ensuring that house prices remain cripplingly high for decades to come to trap people into huge debt?

[TimberWolf]

'Trapped renters' may never buy - Title1

I loved this bit:

Housing Minister Grant Shapps (Tory) said: "It's absolutely right to say that the doubling of house prices in the decade from 1997 (Blame New Labour) blocked an entire generation from the housing ladder.That's why I've announced a new scheme that will mean rather than someone having to save £40,000 as a deposit, £10,000 will get them into their first home." (Do exactly the same thing and increase house prices by giving them tax-payers money)


Print money, give it to property speculators for free, is there any more blatant attempt of ensuring that house prices remain cripplingly high for decades to come to trap people into huge debt?

Yeah, but they could go further. Make banks lend 200% of house price at 0 or minus % interest rate. That way everyone will be able to afford a house. Can't possibly go wrong (see last decade and main government policy).

[northernladuk]

Unemployment keeps rising:

BBC News - UK unemployment increases to 2.64m

Everything keeps getting more expensive and wages are either staying the same or going down.

1) Will a recession happen?
2) Will it mean lower house prices

I am only really bothered about 2) as I want to buy a house finally!

But it will mean plenty of desperate people so some very good bargains. Everytime you see one you like the estate agent go in and offer 20-30% under asking price, state you have no chain and can complete very quickly. Someone at somepoint will snap your hand off.

[Doggy Styles]

HMG are actively trying to avoid significant house price falls because a lot of money is owed against the colateral of inflated property prices. Losses on sale and defaults would compound a recession.

[Epiphone]

The Government cannot and will not allow house prices to fall. They are kept artificially high due to successive Governments pumping money into the housing market. If the prices were allowed to crash to 'proper' levels the country would go bankrupt overnight.

And who would bail out Europe and give billions in foreign aid, then, eh?

[doomage]

Why do people blame bankers and Euro politicians and not real estate agents for Europe's economic mess?

[AtW]

I hope it crashes and burns next year for I've got another 12 months rent signed for my current place

[Sysman]

Why do people blame bankers and Euro politicians and not real estate agents for Europe's economic mess?

Because it was successive governments who relaxed lending rules and offered tax subsidies on mortgages., then bankers who encouraged excessive borrowing.

If you remember the beginning of the MIRAS scheme, even non-taxpayers got "tax relief". That was in fact a subsidy.

Mind you, I'm not saying that estate agents didn't play their part. They probably did by pointing customers at dodgy mortgage suppliers.