Recession

[User removed 4]

The Great British public love buying houses, they want to own their own property, 70% of peol,e buy rather than rent, that will not change and if prices fall 15-20% by next Summer and mortgage funds become available with better rates you will not be able to keep up with the rush to buy. The upturn will be swift and decisivive.

i repeat my earlier post, that mortgage funds are not going to become easily available anytime soon .

 

[cjd]

All this house price crash hysteria is bollocks. It's all about supply and demand. The media / government scaremongering has frightened people into thinking that if they buy now the price of their property will fall and they will lose money and/or be in negative equity. So they make ridiculous offers that no-one will accept. My experience from looking at Rightmove in my area is that prices may be dropping slightly for houses that need to be sold, but predominately people are taking their properties off the market until such time as the hysteria dies down. As fewer properties reach the market the demand will increase and things will level out. It is the new housing sector that is really suffering as they have to sell properties to finance works in progress, they do not have the facility to withdraw their properties from the market.

What an incredibly sensible post....!

I dont understand why people who think if property were to devalue significantly, they would be able to jump onto the housing market ladder. For most people buying their homes at present, if their value were to drop 35%, they simply wont sell it.
For the small percentage of people who will unfortunately lose their homes thru un-employment reasons, this will have little impact on homes being available for the demand needed.
The sector that could have alleviated the shortage, was the new-build programmes. Sadly, this is the sector that has been hit the hardest.Odd when you think about it.

 

[Uncle Spielberg]

i repeat my earlier post, that mortgage funds are not going to become easily available anytime soon .

Late Spring/Summer next year is my best guess.

 

[User removed 4]

Late Spring/Summer next year is my best guess.

what do you base that assumption on ?

 

[Uncle Spielberg]

A hunch. Mortgage lenders business is lending money. The are not going to shut up shop indefinately.

 

[User removed 4]

What an incredibly sensible post....!

I dont understand why people who think if property were to devalue significantly, they would be able to jump onto the housing market ladder. For most people buying their homes at present, if their value were to drop 35%, they simply wont sell it.
For the small percentage of people who will unfortunately lose their homes thru un-employment reasons, this will have little impact on homes being available for the demand needed.
The sector that could have alleviated the shortage, was the new-build programmes. Sadly, this is the sector that has been hit the hardest.Odd when you think about it.

history teaches us that history teaches us nothing.... where were some of you" everything is rosy in the garden" people during the last crash ? peoples mortgage payments as a proportion of their income are far higher now than in the nineties.You can quote interest rates etc at 15% but they were at that level for a few hours , there is a recession looming and as i said the proportion of peoples income taken up by mortgage payments is far higher now than then. Sadly people are going to lose their homes through unemployment in this recession.

 

[beorhthelm]

What you say is quite correct, but if we start down that line we really are in trouble. The British economy is largely based on service industry.

the point is that estate agents can not be absolved of some blame in stoking the fire of house prices. are we not laying some of the blame of obesity at the door step of the food industry and calling for them to reign in their marketing? the fact that many of the estate agents have conducted dodgy practice and outright lied to generate business makes them very much part of the problem.

 

[ridda]

In my last post [Greed] i tried to simplify things, if you want me to go in to the finer details of what is actually going on I will but [we are going to need a bigger board]
Billions have been lost in the financial sector and there is more to come.
House prices will not recover next summer this is going to be very painful and drawn out.
This is not like the last fallout [the nineties] it’s more like the seventies only five times worse

 

[Titanic]

...Billions have been lost in the financial sector and there is more to come...

When you say 'lost', where does it go?

 

[Buttinhams]

This is not like the last fallout [the nineties] it’s more like the seventies only five times worse

In the 1970s inflation averaged nearly 13% across the decade. peaking at 27%. Interest rates peaked at 12%

There are, also three other important differences from the situation in the 1970s.

First, the inflation of that decade was very broadbased, whereas the current pick-up in inflation is driven by rising energy and food prices. Now the prices of many other goods - such as clothing, footwear, hi-fi and computer equipment - are falling.

In the 1970s, all prices were rising sharply, Inflation was deeply ingrained in business life and public expectations.

Second, the 1970s was the era of the wage-price spiral. Wage increases chased inflation upwards as workers demanded higher pay increases to compensate for a higher cost of living.

So far, the fluctuations we have seen in price inflation have not affected pay increases noticeably. Pay settlements have been steady at around 3% to 4% since the early part of this decade, even though measures of inflation have fluctuated much more than this.

Third, we now have a well-established mechanism for controlling inflation, which we did not have in the 1970s. There is a clear target for inflation, and a well-established and transparent process in which interest rates are set by the Monetary Policy Committee (MPC) to keep inflation on track.

We learned in the 1970s the damage that can be done by allowing inflation to become deeply embedded in our economic life.

By contrast, the last decade has shown the beneficial impact of low inflation on economic growth and employment over the long term.

Maintaining price stability, by returning inflation to its target of 2%, will remain the key objective of the MPC.

 

[clippedgull]

One thing I know for sure.

Council properties should not have been sold into the private market.

 

[eastlondonseagull]

I feel sorry for the honest hard working day to day people who get laid off, and people with large mortgages. However I don't feel any sympathy for

1) Property Developers
2) Solicitors
3) Estate Agents
4) People that own streets of houses

Hmm.. it's the banks we've really got to blame, for their f***ing irresponsible lending. Northern Rock's 125% mortgages?!!! WTF was that all about?! No wonder mortgages are so hard to come by these days!

.

 

[Chicken Run]

One thing I know for sure.

Council properties should not have been sold into the private market.

Oh here we go!! It's all Thatchers fault

 

[sir albion]

The concerning thing here in reading is the town seems to be driving out industrial workers,RHM (gone),royal mail is moving to swindon and the big brewery is shutting.

The problem here is the mega high rents that are charged,funny thing is lots of huge office blocks are going up soon by the madejski,yet the two huge ones by the m4 are still empty

 

[steward 433]

Oh here we go!! It's all Thatchers fault

No one person is to blame but i have to agree with this

I have been on the council housing waiting list for 18 years now!!! every year i renew it and ask the question "am i nearer the top?"

"Sorry sir you don't have enough points" POINTS

FIRST COME FIRST SERVED Just because some 16 year old slag can't keep her knickers on she gets given a place to live

 

[sir albion]

No one person is to blame but i have to agree with this

I have been on the council housing waiting list for 18 years now!!! every year i renew it and ask the question "am i nearer the top?"

"Sorry sir you don't have enough points" POINTS

FIRST COME FIRST SERVED Just because some 16 year old slag can't keep her knickers on she gets given a place to live

Thats a bloody long time,have you tried changing the colour of you're skin that normally works

 

[Chicken Run]

No one person is to blame but i have to agree with this

I have been on the council housing waiting list for 18 years now!!! every year i renew it and ask the question "am i nearer the top?"

"Sorry sir you don't have enough points" POINTS

FIRST COME FIRST SERVED Just because some 16 year old slag can't keep her knickers on she gets given a place to live

I dont wish to pry into your personal life but 18 yrs eeekk, in that time you could have saved a substatial deposit and well who knows

 

[steward 433]

Thats a bloody long time,have you tried changing the colour of you're skin that normally works

Sorry but i am white, straight, work and have no disabilities

More chance of f***ing the pope whilst shitting in the queens handbag than getting a council house

Anyone got any boot polish??

 

[steward 433]

I dont wish to pry into your personal life but 18 yrs eeekk, in that time you could have saved a substatial deposit and well who knows

Thanks but you have no idea about my personal circumstances. Have not been able to save due to my ex and solicitors shall we say

 

[London Calling]

I am in the same situation and i am not jealous!!

I am annoyed the bank of england and the government haven't done more to keep the cost of housing down to a sensible level though

Certain countrys in Europe have no mortgages, The government lend you the money for your house INTEREST FREE over as long as you need to pay it back. If you can't pay it back your kids get the house and they finish paying it back

Bearing in mind that you can buy a 4 bed 3 reception house over there for £28,000

Spain built more houses last year than Britain in total since the laste 70's.

That's one of the reasons why they have cheap housing and we have the most expensive in the world.