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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.Housing market move given Brexit and interest rise
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That's just your opinion, prices are high in parts of the country but that doesn't mean it's a massive bubble.Crashy_Time wrote: »I am not claiming to be able to accurately predict the housing market, just that there is a massive bubble and that when it pops there will be a mess. Most people are awake to this now, the audience were even saying on QT that HTB isn`t the answer! The word just needs to filter through to the debate forum and then more or less the whole country will be clued in...:rotfl:
It doesn't really matter what a few posters on discussion board think so long as they don't come here and say buy buy buy prices are going to boom.0 -
That's just your opinion, prices are high in parts of the country but that doesn't mean it's a massive bubble.
It doesn't really matter what a few posters on discussion board think so long as they don't come here and say buy buy buy prices are going to boom.
Not in certain parts of the country like the North East where prices haven't to their 2007 peak. However in much of the country especially the South prices have doubled or more than the 2007 bubble. Flats in West London which were about £230k in 2007 went up to close to £500k earlier this year before they started falling again.
The simple fact that post 2008 interest rates were slashed from 5% to 0.25%, the credit markets were flooded with billion upon billions of £s in quantative easing & funding for lending money making borrowing the cheapest ever. When interest only mortgages were banned for residential use the lenders got round this by increasing mortgage terms from 25 -35 years. The majority of new build flats were flogged off to foriegn investors as well as our most expensive properties sending price rise ripples out to all other properties in the outer areas. Then there was Help to Buy and loads of other things fueling the housing bubble.
Only a independant economists and individuals call a housing bubble before it bursts. The rest call it once it bursts as trying not to rock the boat on the way up. However you have to recognise that many of the props that fuelled the high prices have been removed now.
If you are right and there isn't a housing bubble then prices are sustainable at these levels and won't fall with the removal of these props.
My belief is easy cheap credit leads to higher house prices, clamping down on it leads to falls.:exclamatiScams - Shared Equity, Shared Ownership, Newbuy, Firstbuy and Help to Buy.
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If what you say is true why have prices increased in some areas and not others also it's harder to get a mortgage now than it has been in the past. If people had followed crashy's and your advice it would have cost them a lot of money. The truth is no one knows what will happen to prices and if buying you should be aware that prices could fall but if you are buying a home and are not intending to move in the near future you shouldn't let it put you off.Not in certain parts of the country like the North East where prices haven't to their 2007 peak. However in much of the country especially the South prices have doubled or more than the 2007 bubble. Flats in West London which were about £230k in 2007 went up to close to £500k earlier this year before they started falling again.
The simple fact that post 2008 interest rates were slashed from 5% to 0.25%, the credit markets were flooded with billion upon billions of £s in quantative easing & funding for lending money making borrowing the cheapest ever. When interest only mortgages were banned for residential use the lenders got round this by increasing mortgage terms from 25 -35 years. The majority of new build flats were flogged off to foriegn investors as well as our most expensive properties sending price rise ripples out to all other properties in the outer areas. Then there was Help to Buy and loads of other things fueling the housing bubble.
Only a independant economists and individuals call a housing bubble before it bursts. The rest call it once it bursts as trying not to rock the boat on the way up. However you have to recognise that many of the props that fuelled the high prices have been removed now.
If you are right and there isn't a housing bubble then prices are sustainable at these levels and won't fall with the removal of these props.
My belief is easy cheap credit leads to higher house prices, clamping down on it leads to falls.0 -
People talk about whether prices have hit their 2007 ''peak'' or not as if that's some kind of benchmark of affordability... but the only reason prices hit that peak was due to a decade of irresponsible and fraudulent lending, sub-prime loans, self cert I.O. mortgages etc etc
We've now had a further decade which has seen unprecedented government and Central Bank intervention to prop up and further inflate the property market, back to or above 2007 levels in most areas, whilst wages have barely increased in that time.0 -
I agree prices are to high in some areas, but I don't agree that it is entirely down to government intervention to prop up housing market otherwise property would have boomed everywhere. Most of the measure taken were to protect economy not prop up housing market. What is need is more property in areas where it is needed the most or somehow to spread demand more evenly around the country.People talk about whether prices have hit their 2007 ''peak'' or not as if that's some kind of benchmark of affordability... but the only reason prices hit that peak was due to a decade of irresponsible and fraudulent lending, sub-prime loans, self cert I.O. mortgages etc etc
We've now had a further decade which has seen unprecedented government and Central Bank intervention to prop up and further inflate the property market, back to or above 2007 levels in most areas, whilst wages have barely increased in that time.0 -
theartfullodger wrote: »Brexsh*t is going to sadly seriously damage the financial prospects of so many areas, including housing.
We've already had the 1st direct trade deal: HUGE extra tariffs of British exports to USofA of Bombadier series C.
I weep for my country.
Self evidently that's nothing to do with Brexit. I weep for the logic used by some people.0 -
... the South prices have doubled or more than the 2007 bubble. Flats in West London which were about £230k in 2007 went up to close to £500k earlier this year ...
Such wisdom from the same poster who in early 2009 confidently predicted a crash of 50% by that Christmas.
Oh how we laughed.
:rotfl::rotfl::rotfl:0 -
Such wisdom from the same poster who in early 2009 confidently predicted a crash of 50% by that Christmas.
Oh how we laughed.
:rotfl::rotfl::rotfl:
Yes, it's truly hilarious innit... that an entire generation and more have been priced out of possibly ever owning their own home, unless they're able and prepared to commit unprecedented proportions of their income for possibly they're entire working life to service a mortgage... and the real kicker is it's our government and central bank that have enabled it.0 -
Yes, it's truly hilarious innit... that an entire generation and more have been priced out of possibly ever owning their own home, unless they're able and prepared to commit unprecedented proportions of their income for possibly they're entire working life to service a mortgage... and the real kicker is it's our government and central bank that have enabled it.
Brit boasted openly at the time that he was in a secure government job, earning a police sergeant’s salary and sitting on what he then viewed as a healthy deposit.
He has been coming on here ridiculing anyone who suggested buying a house to live or invest in was a good idea, while house prices have (by his own admission) more than doubled since his prediction of a 50% fall.
Nasty litte HPC-ers like that deserve all the ridicule they get.
He doesn’t post on the Debate house prices board anymore, because he gets torn to shreds there.0 -
Crashy_Time wrote: »I am not claiming to be able to accurately predict the housing market, just that there is a massive bubble and that when it pops there will be a mess. Most people are awake to this now, the audience were even saying on QT that HTB isn`t the answer! The word just needs to filter through to the debate forum and then more or less the whole country will be clued in...:rotfl:
This eminent wisdom comes from a 50-something man who lives alone in a bedsit in Edinburgh, having sold up in the late 90s – just before a 20 year property bull run.
He missed the buying opportunity of a lifetime in 2008-09 and seems to be just a little bitter.
Take his economic predictions with a pinch of salt.0
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