UK House Prices ‘On Brink’ Of Massive 40% Collapse

Jon Economy

– UK house prices on brink of massive 40% collapse
– UK at ‘edge of worst house price collapse since 1990s’
– Two leading economists warn of property crash
– ‘We are due a significant correction in house prices’
– Brexit and wages failing to keep up with inflation to trigger collapse
– Trend starting in London before fanning out to rest of UK
– UK homeowners unconcerned – 58% expect prices to rise
– Over 1 million mortgages under threat in UK
– Concerns of return of new ‘negative equity’ generation
– Huge denial amid recency bias and endowment bias – emotional attachment to expensive things we buy – especially our homes
– Good news for first time buyers – bad news for UK banks and indebted, vulnerable UK consumers and economy
***
Two leading economics professors have warned that the UK housing market is on the brink of a 40% collapse, echoing the early 1990s property crisis.
‘We are due a significant correction in house prices. I think we are beginning to see signs that correction may be starting’ Paul Cheshire, a professor of economic geography at the London School of Economics told the Mail on Sunday.

This post was published at Gold Core on July 4, 2017.