UK government expects house price falls

Yesterday the UK public had a rare view of what the government really thinks about future house price trends. Photographers snapped Housing Minister Caroline Flint arriving for a Cabinet meeting. And then journalists went to work on reading the notes in her hand.
Contrary to official statements, it seems that the government expects ‘sizeable falls in prices later this year – at best down 5 – 10% year-on-year‘ (my italics). Her notes went to add that ‘we can’t know how bad it will get’. I noted last month that the UK was ‘at risk of a US-style housing slump’, and it now seems that the UK government shares my view. This is clearly not good news for future chemical sales, as housing is such a major source of demand.