From: mmaker@my-deja.com
Newsgroups: uk.politics.misc uk.finance
Subject: Re: UK house prices about to fall over the cliff edge. Recession to follow ?
Date: 17 Jul 2005 10:46:20 -0700
   posting-account=AFHzhwwAAACncbAFnkq8rMklByfTc3sm

Crowley wrote:
> Absolutely. Sales volumes are collapsing, buyers are disappearing
> (particularly the crucial First Time Buyers) and prices are falling.

First time buyers were priced out of most areas about two years ago:
the house price inflation since then has primarily been funded by 'buy
to let' mania.

I'm sure Brown will lean on the BoE to cut interest rates, but that's
not the problem: the problem is that most houses are at least 100%
overvalued in most areas at the moment. It will take at least a 50%
drop in prices for first time buyers to be able to buy a reasonable
house for a reasonable price, rather than go into perpetual debt to buy
a crappy one-bed flat.

    Mark