House prices could fall by as much as 30 per cent over the next four years, it has been predicted. That could wipe out all the increases brought by the buying boom since April last year.

The thousands of buyers currently risking 100 per cent mortgages and borrowing up to five times their salary could be plunged deep into negative equity.

The warning has extra force because it comes from a respected expert in the field rather than yet another monthly report from a mortgage lender.

Roger Bootle, managing director of Capital Economics, was formerly chief economist at HSBC and one of the Bank of England’s ‘wise men’ who advised Chancellors under the last Tory government. He said: ‘The message is clear. Houses are now so over-valued that a prolonged period of falling prices is on the cards.’

Analysts at Capital Economics say it would take a fall of 22 per cent to bring the cost of homes back into line with what buyers can afford. A more serious slump, with prices collapsing 30 per cent, cannot be ruled out if there is a 1980s-style ‘boom and bust’ cycle.

Some London ‘hot spots’ have already seen prices marked down in recent weeks, which has been attributed to lower City bonuses and Stock Market uncertainties.

But the analysts at Capital Economics suggest that the most serious and widespread effects will not begin to be felt until late next year. They are forecasting increases of 12 per cent in 2003 before falls of 5 per cent in 2004, 10 per cent in 2005 and 7 per cent in 2006.

That would see the average price rising from around £117,000 now to £128,000 by the end of next year, then falling to £102,000 by Christmas 2006.

Such a shift would push thousands of new and recent buyers into trouble – only last week lender Bristol & West unveiled a new mortgage allowing young people to borrow up to 110 per cent of a property’s value.

The wider economy would suffer as consumers tightened their belts, spreading the gloom into the High Street and beyond. There would also be social effects, with young couples locked into small homes without the space to raise children.

https://www.akelicious.net/2019/07/house-prices-to-fall-by-30-in-nigeria.html

Se property dey depreciate Ni?

Which lazy mods moved this to fp..

The headlines is Nigeria while the Contents is talking about UK

helinues:
Se property dey depreciate Ni?

Doom ananlysis

That is in UK, not in Nigeria

Don’t mind the misleading OP

And the supermod didn’t bother checking the content before moving it to the homepage

Yes, property loses value.
And many factors can cause this including; site, situation and economic policies.

Site factors refers to the depreciation in the materials holding the building. It also refers to the depletion of soil minerals on a farmland.

Situation factors refers to the presence of unfavourable elements around the property. This could be bad roads, presence of refuse dump, siting of a piggery, cemetery or similar features that people find displeasing in their neighbourhood.

Economic policies refers to the laws made banks, housing agencies and ministeries and the forces of demand and supply.

That said, if you need mapping service (print or web maps), GIS Analysis or Remote Sensing service kindly contact GeoAfrikana Spatial Solutions.

Thank you.

Copy n Paste....

This is Nigeria...

Not in Nigeria.. This is just another falsified story

Stop using oyinbo life to analyse Nigeria.

Not possible joor

Come to Abuja na




I build websites and I am based in Abuja, see my signature (09011639568) no advance payment

This OP need a sucker punch...

What is this one saying? How is this related to Nigeria?

Do you know ??
Some girls raise their hands in the church during worship to show men that they have no ring in their hands ���

saasala:
Stop using oyinbo life to analyse Nigeria.

This is what annoys me the most

First of, #ILoveLagos

BTW op, what are you high on?

Se oti migbo yo ni
You need
www.nairaland.com/attachments/7580051_17006bc4d6d53168e5a3f959076cc31873c06_jpega94f4edbff36dfa0e310cb5f94e1bf60

Drabeey was Here

Which kind news be dis with 2003-2006 date

Still quoting in pounds sterlings and calling Nigeria. How am I sure you are not referring to UK?

Can't wait to see the many overpriced politicians houses in Abuja erode by 90%.

Houses in Nigeria ain't worth sh!t

All these lazy mods sef

I just dont understand.

Who do I blame for this mess of a post?

The OP that did not even care to read his post. Using the UK real estate scenario for Nigeria

Or the Mod that was daft enough to move it to the frontpage oblivious of the fact that Nairaland is a getaway through which many foreigners judge and assess Nigerians.

Maybe I should stop coming to this sham of a site

I'm tired

Gicfxgr:
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This guy duped me

Im so sure its not the same in the south east

The price of land n house keep sky rocking

Moderator please do your job. This headline is very misleading, when did UK become Nigeria. Moreover, do we really have a mortgage sector in this country.

Super story

[quote author=obembet post=79956297]

This guy duped me[/quote

If someone like this can dupe you then you must be extremely very dull.

Which illiterate mod pushed this to fp

Nonsense and ingredients

AbuuBilaal:
N

N for No