Oh Dear House prices set to fall next year

[Lammy]

Spot on! Hopefully we'll see an end to crass "lifestyle" programmes where upwardly mobile types and spivy estate agents coo on about how house prices in the a certain area are booming and how a certain suburb is about to become the next "boom area". The whole mentality of seeing a house for profit in this country appears to be unique. (In Europe anyway)
Hopefully those who have found it impossible to find affordable housing in the past will at last be able to find something that is affordable when prices start crashing. Wait for all the sob stories about negative equity. Last time around, most of the hard luck stories were from those who had overborowed on the assumption prices would NEVER fall and they were onto a "sure investment". Sadly, people have short memories. 1990 wasn't so long ago.

That's quite a hard line to take. I should think the great many people who will be affected by this is the first time buyers that had to borrow to the hilt just to get a foot on the ladder. It would be like the ladder being kicked away from under them.

 

[Chicken Run]

Spot on! Hopefully we'll see an end to crass "lifestyle" programmes where upwardly mobile types and spivy estate agents coo on about how house prices in the a certain area are booming and how a certain suburb is about to become the next "boom area". The whole mentality of seeing a house for profit in this country appears to be unique. (In Europe anyway)
Hopefully those who have found it impossible to find affordable housing in the past will at last be able to find something that is affordable when prices start crashing. Wait for all the sob stories about negative equity. Last time around, most of the hard luck stories were from those who had overborowed on the assumption prices would NEVER fall and they were onto a "sure investment". Sadly, people have short memories. 1990 wasn't so long ago.

You make it sound so simple my friend, not to miss the oint though what about the people thru need have begged borrowed & stealed to get on the ladder in the last few year's, will you feel sorry for them when they are reppossed, probably not youll blame the government

 

[Trotster]

Yipee!! Means i might acutally be able to buy myself my own home - been saving for years, pay a fortune in rent but cant get a mortgage to even buy a one bedroomed flat - its all wrong

 

[Chicken Run]

So he's bought a house and now wants to move in the space of a year? What did he do to the house in that time?

What didnt he do for his wife more like, as I said a forced sale!

 

[Lammy]

What didnt he do for his wife more like, as I said a forced sale!

Is it a new house on a new estate?

 

[Chicken Run]

Is it a new house on a new estate?

No it's and old house on a 1930's estate, prices are falling Lammy mate!

 

[Hunting 784561]

The more financially astute amongst you might have realised that if it hadnt been for rising house prices, this country would have been in a recession for the last 3 or 4 years.

Consumers borrowing money against their rising house prices has kept builders, shopkeepers, car manufactures and assorted trades people in gainful employment.

Prices will fall slightly, which will be a natural correction to bring them into line with average earnings, but please give me a bouyant housing market over a stagnant one, any time.

 

[Zeitgeist]

You make it sound so simple my friend, not to miss the oint though what about the people thru need have begged borrowed & stealed to get on the ladder in the last few year's, will you feel sorry for them when they are reppossed, probably not youll blame the government

I realise it's not so simple. Furthermore, those at the bottom of the ladder are the ones I really feel genuinly sorry for, paying over the odds for a rabbit hutch due to the greed further up the chain.

 

[sully]

But you will need to sell your's first

The point is that whan prices are lower, the gap between the cost of different sized houses is smaller. Therefore, the fact that I
will sell my flat for less than it's worth now is irrelevant, as the difference between the sale price of mine and the purchase price of the house I want will be less.

 

[clapham_gull]

Best thing surely would be if house prices remained "steady"

Seems round me that when the prices were rising, the rich rushed in for a good investment (probably renting them out in the mean time) thus making actually finding somewhere affordable to buy very difficult.

When prices are deemed to be falling, mortgage lenders are relunctant to lend to low wage earners - because if they are forced to reposses the property, they will lose out when they have to put it back on the market.

 

[Lord Bracknell]

Define affordable

When I first moved to the three-bedroomed house I still live in, it cost about three times the earnings of a teacher with a few years experience. It was paid for by a combination of a ten per cent deposit and a ninety per cent mortgage. Mortgage rates were about 12 per cent, as I remember, but there was income tax relief on mortgage repayments. The standard rate of income tax was about 40 per cent.

Bit by bit, successive governments have chipped away at this method of purchasing houses (which had served the nation well, over a period of at least fifty years).

We now have no mortgage interest relief and much lower interest rates.

But the house next door to me (we're semi-detached) has recently changed hands for something like TEN times the earnings of a teacher with a few years experience.

Something has gone horribly wrong over the past 28 years.

 

[Chicken Run]

http://news.bbc.co.uk/1/hi/business/4065697.stm

 

[Chicken Run]

The point is that whan prices are lower, the gap between the cost of different sized houses is smaller. Therefore, the fact that I
will sell my flat for less than it's worth now is irrelevant, as the difference between the sale price of mine and the purchase price of the house I want will be less.

What's stopping you now then, as I'm sure the % differential between your flat and desired house will surly remaimn the same

 

[Chicken Run]

When I first moved to the three-bedroomed house I still live in, it cost about three times the earnings of a teacher with a few years experience. It was paid for by a combination of a ten per cent deposit and a ninety per cent mortgage. Mortgage rates were about 12 per cent, as I remember, but there was income tax relief on mortgage repayments.

Bit by bit, successive governments have chipped away at this method of purchasing houses (which had served the nation well, over a period of at least fifty years).

We now have no mortgage interest relief and much lower interest rates.

But the house next door to me (we're semi-detached) has recently changed hands for something like TEN times the earnings of a teacher with a few years experience.

Something has gone horribly wrong over the past 28 years.

So thing's started going wrong in the 60's when succesive govnt's encouraged everybody to get out there and own thier own home! I see.

 

[Lord Bracknell]

There's no way that future governments can realistically expect people to buy houses from income.

The only new entrants to the housing market will be people who inherit wealth from dead parents.

 

[Chicken Run]

And the one point you clapper's (including you,your Lordship) is what about the public servant's police, doctors teachers ect ect who thru assistance have recently got themselves on the property ladder and could possibly fall, to clap sounds very selfish to me perhaps a tad facist

 

[Theatre of Trees]

The point is that whan prices are lower, the gap between the cost of different sized houses is smaller. Therefore, the fact that I
will sell my flat for less than it's worth now is irrelevant, as the difference between the sale price of mine and the purchase price of the house I want will be less.

Very true, I've bought but I'm stuck at the bottom rung at the moment because the difference between what I have and the next step up is too great financially.

 

[Chicken Run]

There's no way that future governments can realistically expect people to buy houses from income.

The only new entrants to the housing market will be people who inherit wealth from dead parents.

In my humble opinion you are wrong my lord, those that mist out during the eighties boom probably thought they would never get on the property ladder, then the reccession, I rest my case

 

[Hunting 784561]

When I first moved to the three-bedroomed house I still live in, it cost about three times the earnings of a teacher with a few years experience. It was paid for by a combination of a ten per cent deposit and a ninety per cent mortgage. Mortgage rates were about 12 per cent, as I remember, but there was income tax relief on mortgage repayments.

Bit by bit, successive governments have chipped away at this method of purchasing houses (which had served the nation well, over a period of at least fifty years).

We now have no mortgage interest relief and much lower interest rates.

But the house next door to me (we're semi-detached) has recently changed hands for something like TEN times the earnings of a teacher with a few years experience.

Something has gone horribly wrong over the past 28 years.

Take it as a compliment. We are a succesful economy, and that has pushed prices up, relatively speaking. People want to live and work in the UK.

Also the cost of a house is not the real issue, its the affordability.

A house worth £200,00 on mortgage rate of 12%, costs the same each month as a house worth £400,000 on a mortgage rate of 6% ( Ok not exacly, but you take my point).

 

[Chicken Run]

Take it as a compliment. We are a succesful economy, and that has pushed prices up, relatively speaking. People want to live and work in the UK.

Also the cost of a house is not the real issue, its the affordability.

A house worth £200,00 on mortgage rate of 12%, costs the same each month as a house worth £400,000 on a mortgage rate of 6% ( Ok not exacly, but you take my point).

No because at what cost a house of 400k @12%