View more on these topics

£350Bn needed to stop house prices halving

Economist John Wriglesworth says the Government needs to pump a massive £350bn into the mortgage market through its special liquidity scheme to stop a 50 per cent fall in prices.

At Mortgage Business Expo in Manchester last week, Wriglesworth said the £50bn Bank of England package was a “snowflake on an iceberg”.

He said: “£350bn might just give the kickstart to get the market going and give the message to investors that this economy is not going down the tube.”

He believes lenders’ relaxation of credit criteria from 2000 fuelled the housing boom of the last six years. He said lenders are now working “in reverse” which has resulted in a collapse in transactions and house prices. He said: “If the Government does not inject more money, I can see this getting worse. If lenders go back to three times income, I think house prices will go back to what they were in early 2000 before credit criteria were relaxed. That is a fall of 50 per cent.”

He said the Government has to wake up to the issues. “If lending criteria are going back to what they were in 2000, why should house prices stay up?”

Wriglesworth does not believe affordability is the reason for price falls. He said rises would have slowed due to affordability pressures but would not have fallen for two or three years.


Twin-track strategy for Moneyextra

Moneyextra is to develop itself as an information hub, lead generator and wealth management tool for advisers and brokers to complement its consumer offering.

Vasilieff is set for platform launch

Former Selestia sales and marketing director Bill Vasilieff’s new wealth management platform will launch this autumn as Novia Financial.


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm