Danny B

http://www.guardian.co.uk/business/2...et.houseprices

My parents sent me this link to the doom & gloom that the UK housing market is currently going through and asked if it could happen in Canada too, Could it?

Some UK houses have already lost 40% and are still dropping.

http://www.propertysnake.co.uk/

MarkG

50% drop over four years sounds about right to me.

Personally I'd say our house here in Canada would currently sell for around 40% more than its fair value relative to incomes, so I fully expect to see sizable drops here over the next few years too. In which case, we'll probably sell it and buy somewhere fancier .

I'd be surprised if any houses have dropped that much yet, but I've read articles about repoed 'investment apartments' being sold at auction for less than half of what the 'investor' paid for them a couple of years ago.

Dave+Jules

Shocking, I lived through the last negative equity nightmare after the disasterous foray into the ERM (precursor to the Euro). I wouldnt wish it on my worst enemy.

I dont think it can happen in Eastern Canada, the banks here seem to have much more sensible lending policies. That is based only my limited view over the last 2.5 years.

The government in the UK has been almost criminally negilent in ensuring that people didnt see the value of saving for the future (care of elderly especially those with some assets compared to those who saved nothing) and the plundering of British Personal Pension Schemes Maxwell Style by Brown.

Lending was slack and this interventionist Government made little squeaking noises from the sidelines. "No No please dont borrow and spend so much", ooops we need them too in order for the economy to look good.

G77

Makes pretty grim reading for someone like me who's trying to get rid of their house here and get over to Canada.

FlirtyKnickers

We must be positive...keep the faith

MarkG

On the plus side, I was reading last night that prices have been dropping in various parts of Canada... so by the time you get here, the money you lose in Britain you may gain in Canada.

Cassie 10000

You are all putting the fear of god in me

G77

If they get any lower in Windsor (where we're going), they'll be giving them away.....

Cassie 10000

Know how you feel.

mandymoochops

oh lord please let our sale go through!!!!

Since it went on the market it has lost 30% of its original listing price 2 years ago

FlirtyKnickers

Fingers and toes crossed mandymoochops and i'll also throw in a Irish house selling dance for you...

Cassie 10000

I wish the BBC and media would give it a rest with there reporting until we get our houses sold.

MikeUK

Why is it the government’s problem that the British public were greedy and happy to see their house prices go up
Nobody said the government is doing a bad job by letting my house price go up, they should increase interest rates, to stop this (well a small minority that was ignored did)
In fact if I remember a couple of years ago when the international monetary fund was advising the British government that it needed to reign in its housing market the popular press were advocating market forces and that the housing market was just fine and all was well nothing to worry about…..
Now that the bubble has burst and its long long over due, people are surprised and its somebody else’s fault
The UK housing market has been on a boom bust cycle for the last few decades, no body wants it fixed when its booming they want the government to stay well away, and then on the bust cycle everybody wants them to fix it, but they want it fixed to the peak of the boom, and not fixed to the mid cycle point
And that is wanting your cake and eating it, and it’s the fault of the greedy public and market forces not your Government

Jingsamichty

Well said MikeUK.

I wonder what will happen to all the "property porn" TV programmes? They make up such a huge chunk of British TV scheduling that there's going to be a big void to fill.

MikeUK

To be replaced by the "get out of debt" programmes that are growing in popularity here