UK Housing Prices Plummet £30k in 1 Year, while Rich Couple invest £3M in 11 Properties

6 November 2008

Halifax announced today that housing prices have fallen 15% over the past year,  farther than in any year since records began 25 years ago.

Without meaning to depress ya'll too much, UK Homeowners have generally lost £30,000 in equity in the past 12 months, and Halifax predicts that they will continue to fall over the next year as well, possibly longer.

Yesterday's figures from the Halifax showed prices dropped 2.2 per cent in October, the ninth consecutive month of falling prices. Daily Mail provides some of the figures:

Many who put down a small deposit to buy their home will be in negative equity, when the size of their mortgage is bigger than the value of their home. Around 60,000 families every month are feared to be going into negative equity, a nightmare for anybody who needs to sell.

Experts convey that the factors contributing most to this massive market slump are rising unemployment, lenders unwavering mortgage rates, and consumer attitudes that home prices have further to fall.

But it appears that some consumer confidence remains, as this wealthy couple appears to have put £3 million cash into buying 11 properties.  Apparently, they think property will be safer than banks.  Or could this be a publicity stunt to gain consumer confidence?

[Daily Mail]

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