UK House Prices ‘On Brink’ Of Massive 40{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} Collapse

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by Mark O’Byrne, Gold Core:
– UK house prices on brink of massive 40{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} 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{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} 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{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} 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.

The sharp correction or crash may come about due to two primary factors – Brexit and a fall in real wages as they fail to keep pace with rising inflation.

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