SEVERAL readers of Times Online commented on new figures from the Halifax, indicating that house prices flattened last month. Particularly contentious was Halifax’s prediction of “sound economic fundamentals and lower interest rates to support house prices”.
John, of Belfast, responded: “Strange that Halifax would make such a prediction. It’s almost as if it has some kind of interest in the housing market.”
This cynicism was shared by Jimbo Jones, of Liverpool, who wrote: “Of course Halifax would say this. It wants rate cuts and will do what it can to inspire confidence. Anything to encourage more buyers, more mortgages, more fees.”
Gavin, of London, gave his own less-than-rosy take. “The housing market is extremely vulnerable and overvalued,” he wrote. “There is no doubt that prices will continue to fall over the next couple of years. Common sense states that homes going up from three times average salary to nine in a few years is unsustainable. The credit crunch will prevent this lending continuing for overvalued properties. Prices can only go down.”
Mick, from Australia’s Gold Coast, said that price falls would be no bad thing: “That house prices have risen 182 per cent over the past ten years makes me wonder why it is so important for the Treasury to lower interest rates to support the housing market. It is plain to see that the market is struggling mainly because house prices have risen by such a huge amount above inflation.
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“Let’s get the market back where it belongs, which is providing roofs over people’s heads and not trying to make them think that they are rich because house values are going up.”
Leigh Gainsley, of London, was a lone voice of support for the Halifax line. “The housing market is starting to prove resilient. Where have all the doom merchants gone? Back into their hole, where they belong. Safe as houses.”