BBC: [UK] Housing gloom 'worst in 30 years'

Confidence in the UK housing market fell in March to its lowest point in 30 years, according to a closely watched survey of property surveyors.

The Royal Institution of Chartered Surveyors’ (Rics) said that 78.5% more surveyors reported a fall than a rise in house prices in March. This was the gloomiest reading since Rics began the survey in 1978.

The results come after leading mortgage lenders offered similarly downbeat views on property prices. Rics said the next six months would be crucial for homeowners and would-be buyers in the UK.

More at

The UK market has hit the brakes spectacularly fast. I put this down to a more open media and it is fascinating to watch.

New warning over mortgage lending

Mortgage funding could be cut by half in 2008 if no extra funding comes from the Bank of England, says the Council of Mortgage Lenders’ (CML) chairman.

Steven Crawshaw, in a speech at the CML’s annual lunch, said that lending at just 50% of the 2007 figure of £108bn was a “real possibility”.

In October the group predicted a 15% slowdown in net lending, but now supply has been hit by the credit crunch.

Lenders have been withdrawing products dramatically in recent weeks.

Yet more: … usion.html

Kind of similar to what McWilliams has been saying, but even more forcefully.

Rather good article.

I particularly liked:

By the way, if anyone thinks we’re all communists here, we are. But some some of us are communists in the way that Warren Buffet is.

We need to update the Communist donkeys story for a new age.

“In a rural village there are two men, one of which owns two donkeys and one of which owns none. Both men need one donkey each to work their field. The man with the two donkeys rents one of his spare donkies to the second farmer. The rural village banks tells the donkey owning farmer “think how much more rent you could get with more donkies!” and they sell him 2 buy to let donkeys. The farmer is unable to rent out the buy to let donkeys, but after discussing with his bank manager he agrees that this is because of the irresponsible doom-mongering by the residents of who say there is no market. Time passes and our 4 donkey owning farmer can no longer pay the interest on his debt to the bank and he tries to sell one donkey on the market. The farmer who doesn’t have a donkey figures he will keep renting as it less than the cost of buying a donkey. The farmer with 4 donkeys becomes desperate, but refuses to sell his donkey for “less than it is worth” and eventually goes bankrupt and the bank forecloses on all his donkeys. The bank now takes possession of 4 donkeys and it now takes its turn in trying to sell the donkeys. As there is only a market for one donkey and there is only one prospective buyer, and because donkeys take money to feed the 4 donkeys are sold to the non-donkey owning farmer for less than one fifth of their previous value. The bank takes a huge loss and is forced to seek additional financing from the owners of large camel herds.”.


Finally the government steps in to rescue the donkey-breeding industry, buys up all the donkeys at bubble prices and sells off them off at a subsidized price to people who would be much better off using a bicycle to get to work. As the new “affordable” donkey owners ride Eeyore down the Stillorgan bypass, they are often heard to mock passing cyclists for “throwing money away”.

It emerges later that the donkey owner had read in the Sunday Indo that only the “smart ballsy” types were buying donkeys at that time, and because no man likes to be described as lacking courage he had bought 2 more donkeys. He also took on board the advice of several leading economists and decided he would make a quick killing in the inevitable upswing by flipping donkeys (not easy let me tell you) and added a further 4 donkeys. He also bought some Antelope in South America. He had never seen an antelope but he was assured they made excellent donkey substitutes for the local people and were less than half the price of donkeys at home."

Completely agree with that. Property Sold prices are available to anyone who cares to look. Although there is a 3 month delay. So if you wanted to see how much your next door neighbour sold their gaff for then you’d have to wait 3 months. Contrast that to here where you can get all the buyers personal info except the actual sale price. Beggars belief.

We need a quick correction so the pain is short lived. We are being deprived of that by a government whose main focus pleasing of their builder benefactors.

Where were you when I was in 1st class !!! :smiley:

I saw a programme on TV that said its much easier to sell your donkeys if you paint them beige.

Could you put a deck around the donkey? Maybe on wheels so it moves along with it?

Soon the country was filled with donkey breeders, donkey salesmen, donkey economists and donkey decorators. The centre of the industry was in Bray. The industry started a secondary boom in thistles, such that many farmers stopped growing real food and just grew weeds things. This suited the EU doen to the ground as they had never really aproved of farmers growing food. This caused generalised food price inflation. As food was not included in the CPI, this did not lead to economic hardship. Except for those people who have to eat. The donkey market collapsed when it was realised that no one needs a donkey to grow thistles.

I suppose these donkeys are what accountants call depreciating asses? :smiley:

I’ve just been banned from for discussing the price of donkeys, they all love donkeys so much over there that they won’t hear anything negative said about them.