The housing market is deteriorating at a much faster rate than it did during the recession of the early 1990s, Bellway said, as expectancy grew in the City that some UK house builders could be forced to raise capital to shore up their balance sheets. Bellway said that the spring season - traditionally a strong sales period for house builders - failed to take off and a restricted supply of mortgages was exacerbating the problem. It now expects volumes to fall by 10pc-15pc this year.

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Damian George

Buy Euros - Best Euro Rates

IMHO, the market correction will always happen.

However, East London is still a good buy when then regeneration work is completed and get ready for the Olympics. I bet the market will be pick up again in 2010.

MK (Milton Keynes) noted as best place for investment on TV.
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Well that is just exciting news... Inflation, pensions, economic slow down, service sector is a mess, and things just keep on getting a bit worse. I wonder when it will start going up hill again.

Just to make everyones day a little more rosey!

Lehman Brothers say the UK economy is likely already in recession
08 July 2008, 09:21:34

Britain is edging closer to recession, economists warned yesterday, after two bleak reports showed that activity in the country's vital services sector has slumped to its lowest level since 2001 and the credit squeeze on businesses is worsening.

A UK recession is now more likely than not, according to Lehman Brothers. In the stock market the FTSE 100 fell 67.8 points to 5,358.5 in early trading - a fall of 20pc since last June and into bear market territory - before recovering to close up 50.3 at 5476.6.

Stock market historian David Schwarz said: "History tells us that long bull markets in the UK are virtually always followed by bear markets where shares fall by at least 25pc."

Lehman Brothers joined those predicting an economic slump. Peter Newland, the bank's economist, said recession this year is "more likely than not" due to the "broad-based contraction in activity". His comments were echoed by Capital Economics, which declared that "the economy has ground to a halt [and] seems to be heading for recession".

Full story at The Telegraph

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Damian George

Buy Euros - Best Euro Rates

Yes, there will almost certainly be further drops in house values - but also a good opportunity for astute investors to pick up bargain properties and a good time for first time buyers to get on the ladder...

True, but the key is being able to call the bottom, I think that would be very difficult to do at the moment!

I agree - particularly at the moment, it is hard to say when liquidity will be restored in the banks. I think there are buyers out there but most people are finding it hard to get the finance in place...

I'm up north, and it's amazing the differences between areas. There are still areas you can get a good price for, but I feel very sorry for first time buyers at the moment.

We are far from the bottom.

Watch mortgage approvals! that is the key. If people cant borrow they cant buy! At the moment the Banks havent the funds to lend to individuals.

How many poeple if they have had a mortgage approved have had the mortgage valuation come back 10/20% lower than the agreed price?

Personaly i would right off 2008 and look to buy in summer 2009.

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Damian George

Buy Euros - Best Euro Rates