Home Ownership

[Uncle Spielberg]

House prices 'still picking up'

The average house in the UK now costs £173,498
House prices are continuing to pick up, according to the latest survey from the Halifax bank.
It says prices rose by 1.4% in February, pushing up the annual rate of house price inflation to 5.5%.

According to the Halifax's calculations, the average property in the UK now costs £173,498.

The bank says further small increases will push the annual rate up in coming months, reversing the slight monthly falls registered a year ago.

Judging by the Halifax's figures, which are based on details taken from its own mortgage lending, house prices have been rising steadily since they dipped to an annual rate of 2.3% in July last year.

Despite this, Martin Ellis, chief economist at the Halifax, predicted that house price inflation would be subdued over the coming year as a whole.

"The continuing high level of house prices in relation to earnings will curb the ability of many potential first-time buyers to enter the market," he said.

"Council tax and utility bills increases of well above inflation in 2006 will also put downward pressure on householders' finances.

"Additionally, the weakening in the labour market should temper housing demand," he added.

 

[dwayne]

Well, thats how I interpret these figures:

http://www.futuresource.com/quotes/quotes.jsp?s=LSS

What is your interpretation dwayne?

so you are basing your Interest Rate outlook on a few currency contracts, on some 2 bob website ok *shakes head*

I'm basing my year prediction on a statement by the Bank Of England.

Longer term, I suspect, interest rates will rise but that's hardly the Governments fault, that's based on historical evidence of Interest Rates (reversion to the mean and all that)

 

[Uncle Spielberg]

Base rate has been around 4.50% for a year and as Dwayne has said is likely to hold around the level and dip to 4.25% by the end of the year.

 

[eastlondonseagull]

What I find disturbing these days is the price of houses oop north these days. In many places, prices are on a par with London, yet wages are nothing like what you get in the south. How the f*** does anyone up north afford their mortgages?

I bought my first house, a three-bed terrace in East London for £89,995 about six years ago. I split with the then-missus, and she bought me out at £175,000.

I bought my current house, a two-bed terrace in south east london, 18 months ago for £132,500. Still a good deal.

Me and the new missus are now looking at buying together over this side of the river and a 3-bed terrace is about £190K.

In York, where my brother lives, three-bed terraces are also £190K. It's just ridiculous!

 

[Lammy]

Base rate has been around 4.50% for a year and as Dwayne has said is likely to hold around the level and dip to 4.25% by the end of the year.

Wo Hoo!!

 

[Arthritic Toe]

so you are basing your Interest Rate outlook on a few currency contracts, on some 2 bob website

 

[Curious Orange]

Base rate has been around 4.50% for a year and as Dwayne has said is likely to hold around the level and dip to 4.25% by the end of the year.

BOO!!

 

[caz99]

I know this comes as a total shock to most people, but house prices can go down as well as up. For some reason, many people are completely blind to this fact and have managed to erase from their memories the 89-94 crash and the one that preceded it in the early 70's (this one was masked by mega-inflation).
All the organisations with a vested interest in the housing market, together with all the property / location tv programs pumped out by the BBC will have you believe that the market will continue unabated, encouraging you to get on the ladder, quick! before it is too late. This is quite clearly impossible - how can anything rise to the point at which no-one can afford to buy it?. Just look at an inflation adjusted graph of house prices since the 1960's. It shows a boom and bust cycle which fluctuates around the long-term average, which is around 3 times average salary.

Right now, we are at the peak of the biggest ever boom cycle - a boom fueled by cheap credit and BTL investors. Guess whats coming next.

Don't get swept along with the current madness - as a first time buyer you will lose out bigtime. Don't believe the hype spouted by the estate agents and mortgage lenders. Do your own research into the history of the market. Don't join this generation of people who seem to have had their brain removed and will take on a massive amount of debt just because everyone else it doing it.

But we are not buying to make a profit like second house buyers . We are just buying to get a roof over our heads and our own space. I havent listened to anyone but a house is an investment and probably the biggest investment anyone will make.

with respect i cant see a recession hitting like the 80s and interest rates crashing through the roof. but i may be wrong.

Like Rob said earlier, my partner works for a bank gets a lot of discounts so that helps us and we havent taken on a crippling mortage to start off with either.

 

[Chicken Run]

What makes everyone think they have a divine right to own a property?

I dont own my property, the bank does, when I do pay off the loan then it's my right to ownership

 

[Goring Gull]

What I find disturbing these days is the price of houses oop north these days. In many places, prices are on a par with London, yet wages are nothing like what you get in the south. How the f*** does anyone up north afford their mortgages?

I bought my first house, a three-bed terrace in East London for £89,995 about six years ago. I split with the then-missus, and she bought me out at £175,000.

I bought my current house, a two-bed terrace in south east london, 18 months ago for £132,500. Still a good deal.

Me and the new missus are now looking at buying together over this side of the river and a 3-bed terrace is about £190K.

In York, where my brother lives, three-bed terraces are also £190K. It's just ridiculous!

I'd disagree to an extent with that. Yes in certain parts up north house prices are high, Leeds, Manchester, Harrogate being three to name a few. But as for teh wages other than the real big earners in London how live out in Surrey , Essex herts etc. Wages for your average job, i.e call centres, Shop work etc is very similar indeed.

The myth that wages are les sup north tends to be exactly that a myth apart from the fortunate few. so youraverage job in Brighton pays roughly the same as teh averag erate in Huddersfiled, Doncaster, Bradford . Leeds etc.

 

[dwayne]

please enlighten me to what you think is so funny?

BTW I work for one of those large city banks you speak of....in errr Derivatives (although not specifically IRD, so I don't proclaim to be an expert, but im all up for intelligent debate)

 

[eastlondonseagull]

I'd disagree to an extent with that. Yes in certain parts up north house prices are high, Leeds, Manchester, Harrogate being three to name a few. But as for teh wages other than the real big earners in London how live out in Surrey , Essex herts etc. Wages for your average job, i.e call centres, Shop work etc is very similar indeed.

The myth that wages are les sup north tends to be exactly that a myth apart from the fortunate few. so youraverage job in Brighton pays roughly the same as teh averag erate in Huddersfiled, Doncaster, Bradford . Leeds etc.

I'm a journalist, and the journalist jobs I've seen up north have far lower salaries than those here in London. Granted, I'm not sure how those in Brighton compare. My missus is an Occupational Therapist. Exactly the same applies.

Her sister is an admin assistant up in Chesterfield, 24-years-old, earning £14,000. New-build flats up there are going for £150K. How does anyone afford it?

 

[Goring Gull]

I'm a journalist, and the journalist jobs I've seen up north have far lower salaries than those here in London. Granted, I'm not sure how those in Brighton compare. My missus is an Occupational Therapist. Exactly the same applies.

Her sister is an admin assistant up in Chesterfield, 24-years-old, earning £14,000. New-build flats up there are going for £150K. How does anyone afford it?

Fair point about new build flats same thing here in Huddes they are converting all the old mills and expecting people to cough up £170k plus and thery are dam small inside as well. There are plenty of acceptable houses around though need a bit of work, but hey that bnever hurt anyone. It's taken me 2 years to get my 3 bed house up to scratch. How many places will you find that don't need any work though without a huge price tag.

London is the exception wages wise but Brighton and the rest of Sussex is very similar to up here, i even get paid a fair bit more than i did in Brighton for a very similar job.

 

[tinx]

Ok I got on the property ladder when I was 18 buyng a two bed flat in brighton for £35k I sold it after 4 years for £60k and had £30k to invest in my nex tplace which was a one bed flat in horsham which cost me £70k giving me a 40k mortgage which was lovely. My missus move din with me but the flat was too small so we bought a decent size 3 bed with a nice garden garage etc etc. between us the mortgage was fine paying a grand a month but on two incomes was fine, now she's not working as she is at home looking after our son I have to fork out around 1500 a month on morgage bills council tax etc which means we are forever skint and this is coming from someone who has been on the property ladder for 12 years now. so much for getting easier as it goes on, the mortgage the bills all go up faster than salaries so year on year we get more and more skint.

 

[eastlondonseagull]

So much for getting easier as it goes on - the mortgage the bills all go up faster than salaries so year on year we get more and more skint.

Yup, same problem here Tinx. I'm far worse off financially now than I was.

 

[Goring Gull]

Ok I got on the property ladder when I was 18 buyng a two bed flat in brighton for £35k I sold it after 4 years for £60k and had £30k to invest in my nex tplace which was a one bed flat in horsham which cost me £70k giving me a 40k mortgage which was lovely. My missus move din with me but the flat was too small so we bought a decent size 3 bed with a nice garden garage etc etc. between us the mortgage was fine paying a grand a month but on two incomes was fine, now she's not working as she is at home looking after our son I have to fork out around 1500 a month on morgage bills council tax etc which means we are forever skint and this is coming from someone who has been on the property ladder for 12 years now. so much for getting easier as it goes on, the mortgage the bills all go up faster than salaries so year on year we get more and more skint.

Exactly the reason we took the decision to move up North and start a family bought the house on just my wages , other stays home and look after our little boy, no point in working just to pay for child care, he goes to play school 3 mornings a week so she gethopefully when he starts school she get a job and we can have more spare cash.

 

[Lammy]

Ok I got on the property ladder when I was 18 buyng a two bed flat in brighton for £35k I sold it after 4 years for £60k and had £30k to invest in my nex tplace which was a one bed flat in horsham which cost me £70k giving me a 40k mortgage which was lovely. My missus move din with me but the flat was too small so we bought a decent size 3 bed with a nice garden garage etc etc. between us the mortgage was fine paying a grand a month but on two incomes was fine, now she's not working as she is at home looking after our son I have to fork out around 1500 a month on morgage bills council tax etc which means we are forever skint and this is coming from someone who has been on the property ladder for 12 years now. so much for getting easier as it goes on, the mortgage the bills all go up faster than salaries so year on year we get more and more skint.

Yeah but that is one hell of a jump up the ladder from a £40k mortgage to £1000+ a month!

 

[eastlondonseagull]

Exactly the reason we took the decision to move up North and start a family bought the house on just my wages , other stays home and look after our little boy, no point in working just to pay for child care, he goes to play school 3 mornings a week so she gethopefully when he starts school she get a job and we can have more spare cash.

Doubt you could do that now, though, not in our professions anyway. Fortunately, my missus already owns a house in Hebden Bridge (bought a few years back for £20K), so we would have a cheap base if we did decide to move, but the days of £30K bargains are long gone now methinks.

 

[Goring Gull]

Doubt you could do that now, though, not in our professions anyway. Fortunately, My missus already owns a house in Hebden Bridge (bought a few years back for £20K), so we would have a cheap base if we did decide to move, but the days of £30K bargains are long gone now methinks.

30K days well and truly gone

You'd be hard pushed to find anything under about 65k these days

 

[DIFFBROOK]

Its all about supply and demand. Too much demand when there is not enough to supply = huge prices. The simple answer is to build more houses. But this is difficult due to the fact that we are running out of spaces.

So if we are not willing to build more houses, then what can we do. Well firstly we need to ensure that every home is utilised i.e its not boarded up but has someone living in it,

Secondly, we could start to relocate some of our Civil Servants out of London to places where living costs are lower (Newcastle, Liverpool etc). I was one of them who got relocated to Leeds. Tax breaks could also encourage other companies to relocate out of the South East. This would at least allevaite some of the pressure on the SE.

Maybe we should look at our lfestyles. For instance there has been a huge increase in the number of single dwellers.

Also I would tax to the hilt those who have second homes. Why should someone have two homes, when somebody else cant afford one.

Of some help might be to extend the repayment period of mortgages. We are all living longer, so why not spread it over your whole working life. So, for instance if someone wanted to get a morgage at 25 and they were retiring at say 65, have a repayment period of 40 years. Not the solution for all, but for some it might help.