Do You Expect House Prices To Increase In Over The Course Of The Next 12 Months?

Do you want seasonally adjusted figures. I can do that on Christmas day after making some blood alcohol level adjustments.

Seriously, I predict that house prices will fall relative to inflation.

South Yorkshire - increase just above inflation

zag2me wrote:

Yep increase, by around inflation(which actaully means stagnation in real terms).

I've been a member of housepricecrash.co.uk too, and was conviced there would be a crash this time last year, but I just dont see it happening in these economic conditions.

well, at least you ain't one sided as most people on there.

Prices are now on the decline, it is seriously a buyers market and anyone who has not realised this is living in cloud cuckoo-land. Over the past year the market has probably lost a fraction as the market has slowed and stagnated, but the houses on the market are now coming under serious pressure. Those who need to sell are having to slash prices to sell them, I have seen numerous houses with 10% + reductions of late, that's alot of loot.

A significant drop is now on the cards, when banks (halifax et al) are predicting 3% growth in reality that means there are problems on the horizon for those who have too much debt in relation to their assets and in particular to their liquid assets (ie cash or near cash equivalents). I predict a downturn in the region of 10% in the year, and potentially further reductions after that. Overall a downturn in the area of 20% from its peak which in my view was somewhere around the start of 2005 / end of 2004.

Those who have not got their finances in order or are have banked on continual 15% rises per year and have remortgaged continually the purchase un-necessary rubbish, had better get out to the january sales to buy a tent (preferably one with some quality insulation for the cold spells ahead) ! :xmassign:

Reasons for the decline :
1. Prices have reached to high a level.
2. Buy-to-let no longer attractive considering potential capital loss/minimal gain.
3. Stamp duty (loads of loot to pay for nothing £300k = £9k, £500k = £20k)
4. Earnings to borrowing near all time high.
5. Inheritance Tax
6. No more pension shield.
7. Gap between purchases massive even with loads of equity
8. Pressure on UK interest rates
9. Pressure on employment
10. Pressure on Inflation