UK housing market heading for 'lost decade', warns Collins Stewart

[BrilloPad]

So why then has the Euro shown a steady decline against the pound for the last year?

Its a race to the bottom. A bit like shower time in prison....

[aussielong]

But for those renting it is money down the drain.

Not necessarily. If you are paying low rent and get a decent yield on your investments you can end up better off without property. This is what i've done in the last 5 years. Now i'm looking for bargain buys.

[aussielong]

So why then has the Euro shown a steady decline against the pound for the last year?

It's a race to the bottom and the Euro is beating the pound.

[scooterscot]

So why then has the Euro shown a steady decline against the pound for the last year?

Rimmer is at it again.

Suddenly all other currencies are euro currencies.

He said Sterling is going down the pan and you change the subject comparing the Sterling with another currency.

Manager material through and through.

[AtW]

So why then has the Euro shown a steady decline against the pound for the last year?

Chart -

[sasguru]

Sterling is going down the pan big time.

£

So why then has the Euro shown a steady decline against the pound for the last year?

[DimPrawn]

This is nonsense. House prices are not going to rise but they are not going to fall much either. Those who are behind with their mortgages are being allowed to stay in them as lenders dont want to crystallize the loss.

I reckon Greece will default this year followed by 2 more years of distress.

Eventually QE is going to lead tro inflation, pay rises and houze prices will rise.

But for those renting it is money down the drain. They might as well get on the ladder even though they will see small capital losses for 3 years. AS long as they are not planning to sell up for 10 years.

WHS.

Without QE house prices would have collapsed and banks folded.

As it is, QE will negate any falls in sterling terms, so you may as well fill yer boots with lots of lurvely property and be quids in.

If you hold a non debased currency or gold however, you'd be mad to buy now.

Sterling is going down the pan big time.

£

[BrilloPad]

This is nonsense. House prices are not going to rise but they are not going to fall much either. Those who are behind with their mortgages are being allowed to stay in them as lenders dont want to crystallize the loss.

I reckon Greece will default this year followed by 2 more years of distress.

Eventually QE is going to lead tro inflation, pay rises and houze prices will rise.

But for those renting it is money down the drain. They might as well get on the ladder even though they will see small capital losses for 3 years. AS long as they are not planning to sell up for 10 years.

[scooterscot]

Is that a lost decade from tomorrow or 2008?

[AtW]

Proposals to boost mortgage lending from the Coalition could backfire and leave first-time buyers in negative equity as house prices fall, according to research from Collins Stewart, in part using its Quest model.

“UK housing could be stuck in a lost decade, with tight lending putting pressure on prices and record low volumes,” analyst Alastair Stewart said.

Mr Stewart, who put a 0p target price on housebuilders Taylor Wimpey and Barratt Developments following the collapse of Lehman Brothers, warned of “at least two or three years of steady house price erosion”.

Mr Stewart said one of the main reasons for the prediction of falling prices is that the “decades old near-mantra” that there is a structural shortage of housing in the UK is based on “flimsy evidence”.

Politicians and industry leaders have claimed the UK is building only half of the 240,000 homes it needs every year.

However, the Collins Stewart research claims the UK has been building double the rate of population growth for 20 years and is in line with the main European countries. It says 11,000 “hidden” homes are built every year that are not officially recorded in construction figures but are picked up by tax authorities.

“We believe that periods of rampant house price inflation have more often been caused by over-supply of capital rather than under-supply of housing – the northern buy-to-let boom of the last decade being a prime example,” Mr Stewart added.

Source: UK housing market heading for 'lost decade', warns Collins Stewart - Telegraph