Ten years after

Originally posted as a column for Inside Housing on September 28.

When I started blogging for Inside Housing in September 2007 I wondered if I’d find enough to write about.

As it turned out there was no need to worry. A week before my first post Northern Rock went bust and the world changed.

What began in the United States as a sub-prime mortgage crisis was transformed by a series of financial acronyms into a Global Financial Crisis.

The connections to housing in this country at first seemed indirect: the UK did not have sub-prime lending on anything like the same scale; we had Northern Rock but there were plenty of other lenders; and the problems at Lehman Brothers and Bear Stearns seemed a long way away.

The direct effects didn’t take long to make themselves felt as credit markets dried up, share prices crashed and politicians panicked at the prospect of cash machines running out of money.

At the time it seemed like we were set for a repeat of the housing market crash of the early 1990s with soaring mortgage arrears and repossessions and families plummeting into negative equity.

One or more of the major housebuilders looked certain to go bust. And the combination of the two would send the banks even further under.

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