FOREX ALERTS >>
DailyFX Plus Login

technical alert

Article

House Prices Falling At Fastest Rate in 6 Years, Says Rightmove
Sunday, 19 October 2008 23:40:42 GMT  |  Ilya Spivak, Currency Analyst
Delicious
Facebook

UK real estate values continued to slide as Rightmove House Prices shrank -4.9% in the year to October, the worst in 6 years. Rightmove’s commercial director Miles Shipside describes the current situation bluntly, saying “from an economic point of view, we've stared into the abyss.” Shipside continued to say rising unemployment will see the situation deteriorate further, forecasting “a lot of repossessions about to happen. The situation is going to get more severe.'' The pace of economic growth slowed to nil from the first to the second quarter, and the UK is widely expected to formally enter into recession by the end of this year. Companies have started to trim expenditure dramatically ahead of the leaner period ahead, pushing unemployment to 8-year highs. For the Bank of England, all of this invariably means interest rate cuts. Indeed, the market is currently pricing in at least 125 basis points in monetary easing over the next 12 months, exerting considerable downward pressure on the British Pound.

More Articles

Feedback Form