Northern Rock’s recovery plan doomed?

A great quote today from Northern Rock’s chairman, as reported on Bloomberg : “If house price were to decline 5, 10 or 15 percent, that would seriously impede fulfilling the [recovery] plan”

UK Housing Minister Caroline Flint’s Cabinet briefing notes as at 13th May, as shown here : “Given present trends, [houses] will clearly show sizeable falls in prices later this year – at best down 5 per cent -10 per cent year on year”

If a UK government bailout can’t save Northern Rock, then I’m not quite sure what can.

The value of investments will fluctuate, which will cause prices to fall as well as rise and you may not get back the original amount you invested. Past performance is not a guide to future performance.

Ben Lord

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