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Homeowners in Britain are 'most gloomy in Europe'
Valentine Low, Evening Standard21 Jul 2008
Homeowners in Britain are gloomier about falling property prices than households in the US and other major European countries, a survey reveals today.
They are convinced prices are going to fall in the next year - even though the majority of people in most other big western economies think they are going to go up.
The downbeat mood is revealed in a survey in the Financial Times, which warns that it is likely to become a selffulfilling prophecy.
Of the six countries surveyed - the others were Spain, the US, France, Germany and Italy - Britain was the only one where more people thought that prices would go down over the next 12 months than thought they would go up (42 per cent compared with 15 per cent - an overall rating of minus 27 per cent).
Even the most pessimistic other country, Spain, managed a positive rating of plus one per cent, while France managed plus eight, Germany and the US plus 10 and Italy plus 35.
People do not think the slump in the property market will last forever. Even in the UK the FT/Harris Interactive survey found that 56 per cent of homeowners think that prices will be higher in 2013, compared with 20 per cent who think they will be lower.
They are worried about repossessions, however. Four per cent of homeowners are "extremely concerned" about the possibility of losing their homes in the next year.
In reality repossessions are very rare, affecting less than one per cent of properties. Even if they manage to hold on to their homes, people believe that the cost of owning a home will become more expensive. One in five of those polled is facing the need to remortgage in the next 12 months, almost certainly at higher rates and with more stringent conditions attached by lenders.
