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House prices ‘could drop another 55%’ and leave Britain bankrupt

Posted By admin On March 12, 2009 @ 5:13 am In Money Watch | Comments Disabled

James Chapman
UK Daily Mail [1]
Thursday, March 12, 2009

House prices could slump by another 55 per cent, a respected City forecaster warns.
It also predicts a deep recession lasting throughout next year and a ‘very real probability’ that Britain will go bankrupt.

The report leaked yesterday from financial analysts Numis Securities says that the collapse in house prices is not ‘anywhere near over’.

They have already fallen 21 per cent from their peak, but the report says they will slump further by up to 55 per cent if the over-correction in prices is as bad as in the early 1990s.

That would leave many millions of Britons in negative equity – when their house is worth less than their mortgage.

House prices could drop another 55% and leave Britain bankrupt obamadecept 340x169 [2]

Yesterday also saw Alistair Darling warn that there could be ‘no instant remedy or overnight solution’ to the economic crisis.

The Chancellor used a speech to prepare the ground for slashing growth forecasts that now appear wildly optimistic.

In November, he had predicted that the economy would shrink by about 1 per cent this year, before growing by about 1.75 per cent in 2010.

Full story here [1]

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URLs in this post:

[1] UK Daily Mail: http://www.dailymail.co.uk/news/article-1161317/House-prices-drop-55-leave-Britain-bankrupt.html

[2] Image: http://www.prisonplanet.tv/subscribe.html

[3] House prices ‘to plummet by 35%’ – the biggest ever fall in Britain: http://www.prisonplanet.com/house-prices-to-plummet-by-35-the-biggest-ever-fall-in-britain.html

[4] House prices ‘will fall further 25% in 2009′, warn analysts: http://www.prisonplanet.com/house-prices-will-fall-further-25-in-2009-warn-analysts.html

[5] U.K. House Prices Fall as Sales Drop to Record Low: http://www.prisonplanet.com/uk-house-prices-fall-as-sales-drop-to-record-low.html

[6] U.S. Home Prices Drop 6.8 Percent in April as Foreclosures Rise: http://www.prisonplanet.com/us-home-prices-drop-68-percent-in-april-as-foreclosures-rise.html

[7] ‘Brown will bankrupt Britain’: Taxpayers face rises of ’5p in every pound’ to plug toxic debt black hole: http://www.prisonplanet.com/brown-will-bankrupt-britain-taxpayers-face-rises-of-5p-in-every-pound-to-plug-toxic-debt-black-hole.html

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