Recession- how long??

What does everyone think about the recession- how long will it last and how bad could it get?



I've heard house prices could fall by up to 50%, and not start to recover until late 2010. I've also heard that 2009 will be the worst year from the aftershocks of late 2008.



How have people been affected? Is anyone else worried?
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Posts

  • i DONT THINK PROPERTY PRICES WILL DROP THAT MUCH , (sorry for caps !) im an estate agent and yes its is quieter but no way near as bad as media makes out , i have been in work between christmas and now and have been busy , by march time i think we will have picked up a lot. x
  • XTinksXXTinksX Posts: 568
    ah thanks lizzie I feel reassured by that. How long do you think before property is worth what it was 6 months ago?
  • LizzyAukLizzyAuk Posts: 509
    Hey hun,



    Well I am one of many who has suffered job wise because of the recession and have been out of work for nearly 2 months with no prospects at the moment what so ever, there is not even any temping work for me yet. The recession is due to last until Autumn next year and because the Pound has hit an all time low it's not good so I guess if the BoE cuts interest rates again things might start to pick up and it's forecast that by 2010 it will pick up!

    I have never been so depressed in my life and it's like you can't even move to another country as it's hitting the whole world!
  • i dont think long at all , but thats my personal opinion , also depends on area too. I brought my house this year if that makes you feel better ? x
  • XTinksXXTinksX Posts: 568
    I feel awful fro all those suffering with redundancy. LizzyA, what are you doing for money?



    This is so depressing all round I can't imagine how you must feel.
  • I think the house prices will increase eventually but only once mortgage lenders ease up and let first time buyers borrow- at the moment its stagnent because you need a huge deposit and the good interest rates are not being circulated enough, I think once the banks chill out a bit it will all get better and there will be an influx of new housebuyers - I'm not sure if house prices will be what they were but def think there will be more movements and eventually increases- worried for people who have negative equity though as thr wait may hit them hardest x
  • XTinksXXTinksX Posts: 568
    I got my flat 2 1/2 years ago and we really planned to move somewhere bigger by now but our flat prob won't sell for what we paid for it, leaving us unable to budge and certainly with no deposit to put down on another place. I am desperate to move so I really hope it improves soon.
  • also have to say I think the economy is the way it is partly through scaremongering everyone is panicking and shifting money causing unrest uncertainty- I'm not on the property ladder yet and can't see it happening anytime soon- especially when my rent is half what I'd have to pay in mortgage repayments for a property the same size (and need a £26k deposit- madness!!)
  • I hope for all your sakes it improves or at least stableizes its no mans land at the minute with the only people benefiting the already rich
  • It is awful new on the job front , rhere has been a lot of redundancies made in my industry and also my partner is in a bad job for it at the mo too.

    i know its easier said than done but think us all worrying about things isnt going to improve the situation , maybe im just silly but im not going to stress unless i really have too x



    on a sad note we have seen a massive increase in repossesions x
  • Quoted:
    It is awful new on the job front , rhere has been a lot of redundancies made in my industry and also my partner is in a bad job for it at the mo too.

    i know its easier said than done but think us all worrying about things isnt going to improve the situation , maybe im just silly but im not going to stress unless i really have too x



    on a sad note we have seen a massive increase in repossesions x


    I totally agree & the more people worry and panick the worse it is getting :\( its so sad



    you want to get a job in insolvancy and sell your soul to the devil- I'm an accountant and half my firms clients are going under (luckily very small firm and they need me so my jobs safe but scary time- worsened by the bloody media) image
  • XTinksXXTinksX Posts: 568
    lizzie18 my mortgage repayments are pretty low thanks to the cut in interest rates, but I'm scared that I will be in negative equity if I don't sell up now while its just about worth what I paid for it. I worked hard to get on the property ladder- do you think it is a good idea to get off it, sell up and rent instead even though that will be more expensive?
  • catseyesukcatseyesuk Posts: 1,821
    i think itl last another year its horrible, has really hit us hard i have been made redundant and struggling to find another job, theres just nothing out there, heading to job centre tomo to sign on for job seekers allowance but thats not enough to live on. really worried.
  • ladyblueukladyblueuk Posts: 1,227
    the houses in our road just aren't selling- one couple have held their own auction twice and not found a buyer.



    i just find it worrying when all these large shops go out of business our highstreets are becoming empty its really sad.
  • can I just say as much as the papers hype up the unemployment figures we've always had a problem with people who can't be bothered to work in this country (In no way whatsoever a dig at anyone who's been made redundent) but even when the going was good there were loads of lazy bastards laguishing on the dole out of their own choice- these people are still there making up the numbers.



    KayTee- if you see and rent you'll probably be in the same boat just sinking dead money into someone elses property - I'm lucky as have low rent (not gone up in 4 years) but if I tried to buy would be paying double- ride it out whilst the interest rates are in your favour!!



    Good luck to all those made redundent- I can't imagine it will be a pleasurable experiance signing on - good luck for new year jobs!! x
  • Quoted:
    the houses in our road just aren't selling- one couple have held their own auction twice and not found a buyer.



    i just find it worrying when all these large shops go out of business our highstreets are becoming empty its really sad.


    mrs blue- these shops would have been in trouble for a long time and been badly managed, not as shocking as it appears to be to us consumers- M&S has been on dodgy ground for years and good management and cash flow has kept them afloat- not contradicting you at all just adding a little useless info to the pot :\)
  • i think its really scary and what i think is worse is that we are at the beginning of it and dont know how bad things are going to get. once things start to improve, i think it'll all be a bit less gloomy, but for the timebeing i think what we are all scared of is the unknown. if we could say for definite that it will last twelve months, house prices will drop by 20% and 2 million people will be employed - that wouldnt be great, but it would remove the uncertainty and we could think about the future more.



    the prospect of redundancy is really scary, and i do feel for everyone who has found themselves in that position. its everywhere you look - the big shops and companies, and i think honda pulling out of f1 was pretty big as well!



  • Quoted:
    lizzie18 my mortgage repayments are pretty low thanks to the cut in interest rates, but I'm scared that I will be in negative equity if I don't sell up now while its just about worth what I paid for it. I worked hard to get on the property ladder- do you think it is a good idea to get off it, sell up and rent instead even though that will be more expensive?




    i dont think thats a good idea , but again thats my opionion , other estate agents and people may tell you other wise. if you want some where bigger why dont you rent your flat out and then rent somewhere yourself ? x
  • MrsA86MrsA86 Posts: 997
    I was made redundant in August and still haven't found a replacement job. I have applied for loads but by the time I see them they're gone and now the job ads are running low!



    We are just about pulling ourselves along on hubbys wage but our credit cards are maxed (before I was made redundant) and now christmas is over we are starting to feel the strain of it all. Our mortgage repayments haven't gone down because we are on a Fixed Rate and tied in for another 5 years! I'm praying to God it picks up soon! xx
  • best piece of advice I've had is dont borrow anything you cant payback quickly (mortgages obviously excluded) that way no matter what happens nothing can be too bad!
  • I think a lot of the problems have been caused by banks just lending too much money especially to people who didn't have it ..I know 3 people off the top of my head who have recently gone bankrupt leaving the banks in the position they are forcing poor folk like us into these situations ...



    It is going to take a long time to get over this as this is the first recession where the banks have actually been implicated i was told ...I personally think if you are on the ladder just stick it out ..we bought our house 4 years ago and it is only just worth what it was then now even though we have done loads to it we desperately want to move and were told that we need 25 % deposit which we wont have in our house so not a great deal we can do ..but at least we are lucky enough to be in stable jobs and have a roof over our heads ..



    My heart goes out to those being made redundant and being repossesed..image ..the government has a lot to answer for !
  • MrsQM2MrsQM2 Posts: 3,723
    I'm thinking that it may last another 12 months at least image.



    We've also had redunancies at my place of work, and other firms of a similar nature, but did find that in the last couple of weeks prior to Christmas that more files were being opened for house buying/selling, but is this because it's picking up, or is it because there isnt as many of us to share the work??



    I think it'll be a while yet before the house prices get back to their peak in mid 2007. It;s so gloomy listening to the news these days, and its horrible at work without my friends there image xx



  • I have to just add the days of the huge house prices weren't ideal for everyone so them dropping should be good news for some- but because of stupid high deposits its not good for anyone! The banks aren't completely to blame - the scaremongering by the media over northern rock etc has prompted people to move large sums quickly screwing the banks over the media have a lot to answer for its as if coining the phrase "credit Crunch" has been a huge coup for them and has kept them busy!
  • salsaspinsalsaspin Posts: 4,098
    House prices have always gone up and down - some people have very short memories: there was a price crash in the early 90s and previously in the 70s after all!



    Whilst I agree that banks etc bare a large portion of the blame, people also need to own up to their responsibilities. After all no one forced people to take on multiple credit cards etc. For far too long many people have lived beyond their means with a buy now pay later mentality, all that is happening now is an overdue correction.



    Don't get me wrong, I believe that some debt like mortgages is good debt- you get something at the end of it. But I know a lot of people that have borrowed money for things they "want" rather than things they need like posh holidays and the latest gadgets.



    Of course this is just my opinion and I don't expect everyone to agree with me!
  • you are right unfortunately people borrowing what they can't repay has caused a large bulk of the problem - minority spoiling it for the majority
  • PumbaaukPumbaauk Posts: 216
    What makes me mad is that with the economy striving continuously and prices going up all the time on food, bills, housing, petrol et.c where did the government really expect it to go??? It was bound to hit a brick wall sometime and once you hit that brick wall there is only one place to go......DOWN!!!! Of course funding a war isn't going to help either!!!!
  • the greedy bastards have been lining their pockets with kickbacks (tax breaks for the super rich for years) they are ok up there in their ivory towers- at least petrols come down and we've got the Olympics to look forward too (please sense the sarcasm in this statement)
  • salsaspinsalsaspin Posts: 4,098
    It is a fact of the last few decades that Labour Governments spend this country into the ground and that the Conservatives are left to pick up the pieces. The current Government inherited an economy on the way up and instead of saving for a rainy day they spent and borrowed as fast as they could. Even other EU countries , Germany being the latest, have expressed disbelief at Brown's decision to spend and borrow more. Roll on the General Elwction I say!
  • here here bloody fat cats good riddance !!
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