The UK Housing Slump in Charts Geoff Riley Tutor2u Economics December 2008.

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Presentation transcript:

The UK Housing Slump in Charts Geoff Riley Tutor2u Economics December 2008

House prices now falling faster than in previous property recessions

The asking price trend tells us it is a buyers market

Confidence is melting away in construction

Jobs will go in building … can public sector investment projects limit the downside?

New housing starts have collapsed – supply responding to falling demand

And capital investment in new dwellings is falling sharply – a casualty of the recession

Base rates are down but mortgage interest rates have only dipped a little

Prices are more affordable for first time buyers – but mortgage availability is poor

Tracker rates have become more popular – I wonder why!

Nowhere is recession proof!

And fewer property owners are prepared to extract equity from their homes

Mortgage supply dries up

The property recession will amplify the broader economic downturn

But might just help our trade deficit!