UK Property "Tipping Point"

[ace00]

First of all, I have no interest in UK property market, don't own one, don't intend to, don't live there. But it seems to me that at a declared 12.4% annual decline we are on the way to a "tipping point".
I estimate about 35% in real terms to be it.
What I mean is that at some point all the interest only mortgages, even with 10% deposit will be so under-water that it will make more sense financially to walk away (BTL, 2nd home). And even capital repayments at less than say 5 years old will be the same. At this point the defaults and repos will hit the roof, further reducing house prices............rinse & repeat doom.
Opinions?

[Spacecadet]

Unlike in the US, in the UK "walking away" from the property does not absolve the mortgaged owner of the legal responsibilty of paying whats owed back to the mortgage provider

[AlfredJPruffock]

Why this figure of about 30 per cent ?

When the Jap economy tanked after a government bailout - property prices in Tokyo declined 90 per cent in the 90s and have never recovered .

I see no reason that the London property market will not suffer a similar fate.

Unless we all vote for NL of course.

[rootsnall]

Unlike in the US, in the UK "walking away" from the property does not absolve the mortgaged owner of the legal responsibilty of paying whats owed back to the mortgage provider

It does if you go bankrupt at the same time.

[Moscow Mule]

My mum sells repossessed property for banks.

Business is booming, she's taken on 30 staff in the last 6 months.

[swamp]

Buy to let is the biggest problem.

A friend of mine bought a BTL flat last year which he financed with an interest only mortgage which, at present, is not entirely covered by the tenant's rent...

[ace00]

My mum sells repossessed property for banks.

Business is booming, she's taken on 30 staff in the last 6 months.

Sweet. I'll take a castle, sea-view, functioning draw-bridge & moat. I got about 10 grand spare. Pm me.

[scooterscot]

Buy to let is the biggest problem.

A friend of mine bought a BTL flat last year which he financed with an interest only mortgage which, at present, is not entirely covered by the tenant's rent...

I blame myself.

I have a 2nd home that I let but it's not a BTL like above rather it's my first home that I just never sold. About 40% LTV

[PerlOfWisdom]

Why this figure of about 30 per cent ?

When the Jap economy tanked after a government bailout - property prices in Tokyo declined 90 per cent in the 90s and have never recovered .

I see no reason that the London property market will not suffer a similar fate.

Unless we all vote for NL of course.

Well, all NL has to do is devalue the £ at the same rate, then the price won't actually drop at all.

[The Lone Gunman]

My mum sells repossessed property for banks.

Why didn't you tell me that before I bought a house? A repo would have done nicely.