Gloom on the Housing Front
Caroline Flint, the Housing Minister, has made an embarrassing blunder by revealing notes that highlight the Government's concerns about the state of the housing market.
An image of the notes was obtained by an Eagle-eyed photographer as Ms Flint walked into 10 Downing Street for this morning's routine Cabinet meeting. She had been carrying the notes in a transparent plastic folder when the waiting media snatched a sneaky peek at the front page.
The notes give a candid appraisal of the state of the market, with house prices expected to fall by 5-10% at best year-on-year. The notes also confirm that the number of repossessions is on the increase and that no-one knows how bad the downturn in the market will be.
A recent study by the Royal Institute of Chartered Surveyors (RICS) puts the UK housing market in its worst state in more than 30 years. RICS say that 82% of estate agencies are reporting property price falls, compared to just one percent reporting price rises.
The combination of crippling interest rates and falling property prices gives rise to the real concern that mortgage holders will fall into negative equity.
Now is probably an opportune moment to sell. It's a pity that most people are too poor to be in a position to buy!
An image of the notes was obtained by an Eagle-eyed photographer as Ms Flint walked into 10 Downing Street for this morning's routine Cabinet meeting. She had been carrying the notes in a transparent plastic folder when the waiting media snatched a sneaky peek at the front page.
The notes give a candid appraisal of the state of the market, with house prices expected to fall by 5-10% at best year-on-year. The notes also confirm that the number of repossessions is on the increase and that no-one knows how bad the downturn in the market will be.
A recent study by the Royal Institute of Chartered Surveyors (RICS) puts the UK housing market in its worst state in more than 30 years. RICS say that 82% of estate agencies are reporting property price falls, compared to just one percent reporting price rises.
The combination of crippling interest rates and falling property prices gives rise to the real concern that mortgage holders will fall into negative equity.
Now is probably an opportune moment to sell. It's a pity that most people are too poor to be in a position to buy!
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