Blunder lets slip Governments house price pessimism

Discussion in 'Current Affairs, News and Analysis' started by Blogg, May 13, 2008.

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  1. Oh what a first class Pratess she is. Or was.

    Caroline Flint blunder lets slip Government's house price pessimism

    Caroline Flint, the Housing Minister, today made an embarrassing blunder by revealing she told Cabinet this morning that she now expects house prices to fall by between five and ten per cent this year “at best”.

    The Housing Minister also admitted that “we can’t know how bad it will get” and told her colleagues that house-building was “stalling” – despite Government claims that they will rapidly accelerate the building of new homes across the country.

    Her prediction was revealed after she emerged from Number 10 carrying her official briefing note which could be seen by waiting photographers.

    The document, headed "Caroline Flint - speaking notes", had a sticker attached which said "Papers for Cabinet meeting 13 May 2008".

    It pointed out that leading house price indicators were predicting reductions for the first time in recent years.

    "Given present trends, they will clearly show sizeable falls in prices later this year - at best down 5 per cent -10 per cent year on year."

    "Housebuilding is stalling," she also warned. "New starts are already down 10 per cent compared to a year ago. Housebuilders are predicting further falls."

    The note ends: "It is vital that we show that at this time of uncertainty we show that we are ON PEOPLE'S SIDE."

    The blunder is likely to lead to renewed pressure on Gordon Brown who is accused of not addressing people’s economic concerns early enough.

    The Government has publicly denied that house prices would crash and has never previously issued a forecast on the property market.

    Figures released by Ms Flint’s department this morning showed house prices have only dropped by 0.1 per cent during the first three months of the year.

    However, a ten per cent fall in house prices would wipe more than £20,000 off the value of a typical home and would plunge tens of thousands of people into negative equity.

    Ms Flint’s candid assessment on property prices came as other studies also revealed the deteriorating state of the housing market.

    The Council of Mortgage Lenders (CML) this morning announced that the number of new home loans dropped to 46,500 in March – a 48 per cent reduction on the same month in 2007.

    A Royal Institution of Chartered Surveyors’ (RICS) study found that the housing market is in its worst state for 30 years after a record number of estate agents reported falling property prices.

    RICS said 82 per cent of estate agents in the UK had seen a drop in prices since the start of the year, with just one per cent reporting a rise.

    The ratio is the worst since records began in 1978, and means that the housing slump is even more widespread than during the crash of the early 1990s.

    Music to the ears of property vultures everywhere. But not so the owners of Northern Rock. Oh............

  2. The 'news' that house prices will drop by 10%+ this year, or that house building has fallen off a cliff, is old hat and shouldn't come as a surprise to anybody.

    What concerns me more is the cheap and nasty Banner-type folder that she uses to convey her briefing notes to No 10. What happened to stylish attache cases etc?
  3. We really do have a bunch of eejits trying to run this country. Bring on the next election.
  4. Bring on the next execution!
  5. 'Bring on the next election', eh?

    Do you really think that 'call me Dave' and his common purpose cohorts will be much different to Liabour? I wish it so, but there is nothing but a cigarette paper between the three parties'. And they are all under the control of bigger and more powerful interests than the British public. Such as multinational businesses and the EU. This is not democracy; we don't have democracy, tragically.

    Look at Cameron. He's a virtual carbon copy of Blair circa 1995/96/97.
  6. Ord_Sgt

    Ord_Sgt RIP

    This lot make retards look like geniuses. :roll: What a bunch of talentless toads.

  7. Bit harsh on the toads mate!