House prices set for 'slow motion' crash

Kauders thinks house prices rose from the Seventies onwards mainly because the flow of fresh mortgage lending into the system grew more or less uninterruptedly, the Daily Mail reports. Now, he said, we have reached 'system limit'. The supply of credit cannot grow further, but instead will start to dwindle and continue to shrink for decades. 'There will be small rallies, as we see today, where lending appears to be reviving,' according to Kauders. 'But these periods will be followed by greater mortgage contraction. And each time, the value of property will fall, reaching a new, lowe...