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Article: Crumbling: house prices. (housing market in UK)
- Article from:
- The Economist (US)
- Article date:
- September 24, 1994
CopyrightCOPYRIGHT 1994 Economist Newspaper Ltd. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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EVIDENCE that the feeble recovery in Britain's housing market is stalling has been greeted with widespread dismay. Home owners with heavy debts may be understandably alarmed: without higher prices, many remain trapped by their mortgages. But for the economy as a whole, stable house prices could be a signal that, at last, Britain is seeing an economic recovery that will not before long lead to an even bigger bust.
After falling for three years, house prices started to perk up last year. Since this spring, however, the green shoots on Acacia Avenue seem to have withered. Housing turnover and mortgage lending have slipped, and prices have fallen.
One reason may ...