No house price recovery until 2010
The chief executive of HBOS, which owns Halifax, the UK’s largest mortgage lender, has warned that house prices are unlikely to begin a recovery before 2010.
According to Andy Hornby, confidence in Britain’s housing market will not return until banks can raise significant sums on the wholesale financial markets.
In addition, house price deflation could be stronger than that seen in the early 1990s, as UK lenders will have difficulty in accessing funding until US house prices begin to recover.
While Mr Hornby expects the UK economy to continue its slowdown he believes unemployment statistics will stay below levels seen in the early 1990s and that relatively high employment will continue to underpin the UK housing market.
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