Quote ="Saint Simon"They were never in real trouble. In this climate, their land holdings dipped in value, but in 2/3 years it'll be higher than before so all the "losses" will be gains.'"
Disagree re last part.
It will take a good while before economy recovers, by that time there will be 3-4 million unemployed.
That means few people able to pay for a mortgage so lower demand = lower prices.
Add onto that the fact that the banks have had fingers burned re giving out mortgages to people who shouldnt have them. The government will also be tightening regulatory controls on banks that will limit their ability to lend as much capital.
End result IMO will be a continuing drop in house prices for next 12-18 months then a levelling out followed by slow climb, that is more in line with wage inflation.
Ive read that it could be 10-15 years before prices reach the levels of the height of the boom period
