Will the house price bubble burst the banks?
‘The deputy governor of the Bank of England, economists from Deutsche Bank and Barclays, and research company Hometrack were all queuing up last week to predict that house prices would fall - with 20 per cent providing a rough rule-of-thumb measure of the overvaluation.
The statistics now seem to be bearing that out. The British Bankers Association reported a 35 per cent fall in the number of mortgage approvals in October, compared with the same period last year and house price indices are starting to register declines.
Most of us remember what happened the last time house prices fell: repossessions reached more than 90,000 a year, many more struggled to keep their repayments up and banks and building societies were crippled by bad debts.’
Read more at The Observer | Business | Will the house price bubble burst the banks?
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