by Mark O'Byrne, Gold Core: – 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.
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.