Wednesday, 16 January 2008
UK Housing Market Worst Than 1992
"U.K. real-estate professionals said December was the worst month for the housing market since the aftermath of Britain's last recession in 1992."
" 'The housing market is in the throes of a significant correction,' said Richard McGuire, an economist at Royal Bank of Canada in London. 'We don't see a collapse, but there will be a pronounced downturn that will weigh on consumption.' "
We were looking for triggers , here is one: the UK housing Market. The English throughout Europe were known to be aggressive buyers. This has ended and with it speculative money flowing in Europe especially in France and Eastern Europe.
The Questions how bad it will hurt the UK consumption therefore the UK economy. According to the ECB President Jean Claude Trichet, UK counts more than the U.S. with regard to trade.
We all knew that it (slump in housing market) will happen but problem was to put a date and the extent of the correction. The date is now clear : 2008-2009. The correction 20-50%?
Related: What will be the trigger? UK