Cyprus-Forum.com

[Johnson&Johnson]

houses in the UK now cheaper then they were a year ago.

nearly 4% falls in 2 months - that's 24% annualaized.

i thought property only went up ????

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UK house prices down 1.3pc in April: Halifax

By Emma Thelwell
Last Updated: 9:02am BST 02/05/2008

House prices across the UK fell by 1.3pc last month, according to the latest data from Halifax.

Britain's biggest mortgage lender said it expects a 'mid-single digit' drop in prices over the year. However, it warned that there will be regional variations. Some areas of the country, such as Scotland, are likely to record modest price rises whilst other parts - such as Wales and the West Midlands, will suffer above average falls.

Halifax said the decline the price slide was driven by a squeeze on spending power amid the rapid rise in house prices over the last few years. The group also pointed out that a modest decline in 'real' earnings had kept demand in check.

The average property in the UK is now worth £189,027, Halifax said, down 0.9pc on this time last year.

The news comes two days after Nationwide Building Society said that British house prices are now falling year-on-year for the first time since 1996.

The prospect of property values falling below what they were worth this time last year raises fears that many homeowners may be pushed into negative equity - as the amount owed on their mortgage exceeds the price of their home.

The current weakness in the housing market will only add to calls for the Bank of England to cut interest rates from their current level of 5pc.


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BoE 'must act to avoid recession'
David Blanchflower, one of the nine people at the central bank who votes on interest rates, warned on Tuesday that prices could tumble by as much as 30pc in the next two to three years and, that without a sharp reduction in rates, the UK economy risks a recession.

The condition of the once booming housing market is proving a huge political headache for the Labour, which yesterday took a hammering in the local elections. With just over half of results the local elections announced, David Cameron’s Conservatives are on course for a significant breakthrough, winning as much as 44pc of the national vote.

Mr Blanchflower, who this month voted to cut interest rates by half a percentage point, said that Britain was facing a US-style economic downturn and urged the Bank of England to take "aggressive action" to prevent it.

The credit crisis that has gripped finanial markets since last summer is piling further pressure on house price valuations as banks move to conserve cash and tighten their own lending criteria. The Bank of England and the Treasury last week unveiled a £50bn plan designed to get the country's top banks lending to each other again.

House prices: News, views and data
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Forecasters are becoming increasingly pessimistic about the chance of a sharper fall in house prices. Last week, investment bank Morgan Stanley predicted that house prices across the UK could fall 15pc over the next two years, which would see 1.2m households forced into negative equity.

The number of mortgages approved has dropped to the lowest since the Bank of England's records began in 1993. Some economists, believe the figure is worse, possibly the lowest since 1992 — the depths of the last housing crash.

Although the Bank of England has cut interest rates three times in the past five months, mortgage rates faced by Britain's homeowners have actually risen by an average of around 1.25pc.

[miltiades]

My first house cost me£5900.00 , my second bought in 1974 cost me £20000.00 , subsequent to that there was a "crush " sold the first house in 1976 for £13000.00 sold the second one during another "crush " for £50000.00

The first one is now worth around £450000 , the second around the same figure. Yes crushes happen every now and then but by far the best investment is property.

Bought my first 3 bed apartment in Limassol , prime position , for CY£32000 way back in 2000 , bought my second in 2002 , 3 bed prime position , for Cy £50000 . Current estimates both together well over CY£ 200000 . Crush on no crush still the best investment .Put your money in property , long term you can not lose.

[Jerry]

A relative in UK put her house up for sale about 6 months ago for £235k. It's in a road where there has always been a bouyant market. The house is up now for £185k, it gets the occasional viewer but prospective purchasers can't sell their own so it's still on the market. I make that a 20% drop in 6 months! I'm looking to buy in Cyprus but the increases of last year and poor exchange rate have almost priced us out of the market. The problem in Cyprus is that there has never been a fall in property prices and it's something the developers can't get their heads round. I have noticed a fall in the some prices in Cyprus - it's usually re-sales by Brits.

[souroul]

i cant wait for a cy property crash

[Johnson&Johnson]

your wish shall come true...

property bubbles are good for

banks
estate agents
developers

and bad for
working people
first time buyers
the poor

[simonwjones]

The bigger you buy the harder you fall.

If you buy a nice big house you are leaving yourself open to potential trouble.

[cyprusgrump]

The bigger you buy the harder you fall.

If you buy a nice big house you are leaving yourself open to potential trouble.

Can you explain that or did you just read it in The Daily Mail or something?

[simonwjones]

The bigger you buy the harder you fall.

If you buy a nice big house you are leaving yourself open to potential trouble.

Can you explain that or did you just read it in The Daily Mail or something?

No. If you read above MrG about the member who had their house on the market for £235k and now its on the market for £165k or whatever. Thats what I mean.

[Jerry]

Ah! The property I was referring to is in UK (£ sign should have been a clue). My point was that prices fall in UK so we can't afford to buy in Cyprus and Brits buy more Cyprus property than anyone else (so I've been told). And then there is the question of the effect, or not, of a settlement on prices. This time last year if I had had the funds I would not have hesitated to buy in Cyprus, now I have the funds I'm hestitating.

[cyprusgrump]

The bigger you buy the harder you fall.

If you buy a nice big house you are leaving yourself open to potential trouble.

Can you explain that or did you just read it in The Daily Mail or something?

No. If you read above MrG about the member who had their house on the market for £235k and now its on the market for £165k or whatever. Thats what I mean.

Okay, so what you are saying then is that you agree prices are falling?

And the bit about ‘The bigger you buy the harder you fall’ was just rubbish because it is patently untrue?