We'd like to remind Forumites to please avoid political debate on the Forum... Read More »
PLEASE READ BEFORE POSTING: Hello Forumites! In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non-MoneySaving matters are not permitted per the Forum rules. While we understand that mentioning house prices may sometimes be relevant to a user's specific MoneySaving situation, we ask that you please avoid veering into broad, general debates about the market, the economy and politics, as these can unfortunately lead to abusive or hateful behaviour. Threads that are found to have derailed into wider discussions may be removed. Users who repeatedly disregard this may have their Forum account banned. Please also avoid posting personally identifiable information, including links to your own online property listing which may reveal your address. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Barratt warns of house price falls - the fears are spreading
Doc_N
Posts: 8,557 Forumite
Barratt boss warns of house-price falls
Nick Goodway, Evening Standard
26 September 2007, 9:27am
The credit crunch and woes of Northern Rock will push down demand for new homes and could result in price falls, Britain's biggest housebuilder warned today.
http://www.thisismoney.co.uk/investing-and-markets/article.html?in_article_id=424713&in_page_id=3
I'm loving this - the more the press and media talk about falling house prices, the worse it gets. Just as fear of missing out drove prices up, now fear of paying too much is driving them down again.
There's hope for our kids yet to buy, hopefully at the expense of the greedy buy to let people.
Nick Goodway, Evening Standard
26 September 2007, 9:27am
The credit crunch and woes of Northern Rock will push down demand for new homes and could result in price falls, Britain's biggest housebuilder warned today.
http://www.thisismoney.co.uk/investing-and-markets/article.html?in_article_id=424713&in_page_id=3
I'm loving this - the more the press and media talk about falling house prices, the worse it gets. Just as fear of missing out drove prices up, now fear of paying too much is driving them down again.
There's hope for our kids yet to buy, hopefully at the expense of the greedy buy to let people.
0
Comments
-
I am relieved too that the media has finally changed its tune. Here are the latest headlines from http://www.thisismoney.co.uk/houseprices:
Property boom trebles £1m-plus homes
Can the UK avoid a house price crash?
Warning of a 1990s-style property crash
Housing market 'is heading for a fall'
Property asking prices take £6,000 tumble
House prices fall for first time in two years
Credit crisis 'to slow top-end house prices'
House prices jump despite rate hikes
They went from using the words "jumping" to "slowing" to "tumbling" to "falling" and finally to "crashing" in a matter of 15 days. Hopefully the tabloids will join the chorus soon. Then maybe we can finally move out of my mother in law's house!0 -
Thankfully, the situation is coming to the forefront of the media now, albeit slowly. However, as sentiment is such a major factor in the housing market, things will only gather momentum now.
When I first mentioned the possibility of a crash a couple of months back I was literally ridiculed. What a difference a few weeks makes.
I feel sorry for those young people who have been lied to, and led to believe that they had to get on the ladder before they missed the boat. I feel a lot less sorry for those with a cocky 'house prices only ever rise' attitude though. Ah well, interesting times ahead, that's for sure!0 -
well we'll see, still no signs of slowing in my neck of the woods.
or my mates' areas either.
we're all dotted in & around london & surrey.0 -
CB's post is in itself evidence of changing sentiment.
He has been a champion of HPI and has always refused to even acknowledge the possibility of a crash.
Here he is saying "we'll see".
I rest my case.dolce vita's stock reply templates
#1. The people that run these "sell your house and rent back" companies are generally lying thieves and are best avoided
#2. This time next year house prices in general will be lower than they are now
#3. Cheap houses are a good thing not a bad thing0 -
=dannyboycey;6387777When I first mentioned the possibility of a crash a couple of months back I was literally ridiculed. What a difference a few weeks makes.
It hasn't happened yet. It is just panicky people overreacting.
The market is slowing down and some properties are dropping in price but a crash?0 -
Didn't Barratt also say that longer term house price growth was to continue?
So this short term credit crunch wont really have a housing market crash since people can just wait 2 years before selling. No cheap houses sorry to say.
I think you wouldn't even get a 40% drop in the worst area's of the country, let alone anywhere else. I think at best, you'll see 20% drop in the worst areas, much less in the better areas, but saying that, why sell when house prices drop?
Surely if house prices drop, you simply sit and wait for the rise again. Which reduces the number of houses on the market, so demand would still be high comapred to how many homes are for sale.0 -
going2die_rich wrote: »Didn't Barratt also say that longer term house price growth was to continue?
Well they would say that wouldn't they.0 -
we are emigrating to australia in the enxt 3 months. we'd better hurry up and sell!0
-
There's hope for our kids yet to buy, hopefully at the expense of the greedy buy to let people.
I think you are dreaming.
Firstly, any crash in house prices leads to banks tightening what they lend out. Would you lend money to a 20 year old on a low graduate wage with no deposit or a 30 something year old with £10k deposit? Also banks will reduce the multiples they use to calculate how much they will lend you making even a reduced house price in todays terms still out of the reach of some peoples means. So how exactly does that get your kids back to being able to buy? If you want kids to be able to afford it in the long term you need more houses with a slow down in house prices but an increase in salary. But that isn't going to happen at the speed thats needed.
Secondly, the buy to let market is ver small comapred to residential buyers, but they have less to worry about anyway if the house prices did drop, as buy to lets are long term investments. These are people who decided to buy a house instead of pension pot, so are in for the long game. Which means a drop now has no meaning to them, since they aren't intending to sell till 20 or 30 years later down the line.
Thirdly, if a crash does happen, don't expect to be jumping in getting a bargain for your kids, as their are plenty of other investors with far deeper pockets than yourself who will be picking up property/land like it's free. They can also afford to hold on the years it takes for prices to go back to booming, before selling up.
Will you be gutted if a year passes any no house price crash has occured? As thats what's going to happen, so just settle for a 10-20% drop
0 -
going2die_rich wrote: »
As thats what's going to happen, so just settle for a 10-20% drop
Hi!
Please could you send me the address of where you bought your crystal ball?
Thanks!0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 351.6K Banking & Borrowing
- 253.3K Reduce Debt & Boost Income
- 453.9K Spending & Discounts
- 244.6K Work, Benefits & Business
- 600K Mortgages, Homes & Bills
- 177.2K Life & Family
- 258.2K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.2K Discuss & Feedback
- 37.6K Read-Only Boards