UK in top three at risk of housing crash by Finance News Bulletin

Published: 18/12/07

Britain's economy has been recognized one of the three most vulnerable to a property crash in a account by a top City credit rating organization - with property more than 20% overvaluedWhat's the property rumor See what This is Money readers have to say and split your views on the message boardsThe particular report from Fitch Ratings also named the UK as having the second most overrated house prices, behind FranceIt said the UK, Denmark and novel Zealand were the countries most exposed to economic problems if possessions prices weakened and interest rates rose

Fitch, which judges how risky money owing is for the City, highlighted how home prices had massively outstripped incomes in Britain over the past ten existenceAccording to Halifax's June house cost figures, the average home in the UK has risen to £196,500, compared to £68,000 in 1997Meanwhile, the most recent figures from the Office of National Statistics supposed the disgusting median salary had risen from £16,700, in 1997, to £23,250 in 2006Brian Coulton, of Fitch, said: 'Given record levels of household debt, increasing interest rates and after several years of strong home price inflation in many countries, Fitch has assessed a range of indicators of household balance piece vulnerabilities and house price valuation measures

'For in general vulnerability, New Zealand position first, Denmark second and the UK third as the most bare countries Japan, Germany and Italy are the least vulnerable'The report added that France was the most bare country to housing overvaluation, followed by UK, Denmark and novel Zealand, which all exhibited the most susceptible rankingsHowever, Britain's relatively high family net worth and lower debt servicing costs helped family finances to be less at risk if prices tumbledFitch supposed that in some economies there is also evidence of oversupply with more possessions being built than households created

In Ireland and Spain new dwellings were still being produced at tax which exceed new household configuration, while in the UK new households outstripped the supply of propertyGLOBAL possessions MARKET RATINGSRankingHousing overvaluationHousehold vulnerability riskOverall riskSelect a loan term 12 months (1 day 24 months (2 existence 36 months (3 existence 48 months (4 existence 60 months (5 existence 72 months (6 existence 84 months (7 existence 96 months (8 existence 108 months (9 years) 120 months (10 years)Please choose a type of insurance Life insurance Home and contents Car stop working services Health - medical Health - dental Travel favorite - dog favorite

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