Savills - No recovery for 8 years

WTF?_2

bdon wrote: »

Isn't the answer well-maintained social housing. I grew up in some and didn't feel "deprived" at all.

I find all this talk of "homes" in the same breath as "investment" by market manipulators is making me more and more queasy.

We do all seem to have lost our way....

Yep - but of course it's all coming unwound now. Things have a way of sorting themselves out I reckon. Give it another 12 months and we'll be looking back on 2007 as an incredible aberration and wondering !!!!!! we were all thinking....

WTF?_2

dopester wrote: »

I guess this is the first part of the recovery then?

Lets see if the axed Savills staff are so canny to take in Savills' recovery expectations in to account. Go on.. buy a few more houses. If you don't lose your own home first.

http://www.guardian.co.uk/business/2008/aug/24/realestateindustry.savills

Actually, I agree to a point. It has been the withdrawal of credit that has spurred the almost unprecedented collapse in prices and decimation of volume in the market. Even now there are still idiots around who would borrow silly amounts if they could

On the other hand, the actual market had turned at least 4 months before the 'no questions asked' mortgages dried up.

I suspect that the disappearance of 'cheap credit secured against property' coincided with the lenders realising which way the market was going. As it becomes clear which way the general economy is going, something similar is going to happen to general credit though probably not to such a drastic extent.

ManAtHome

I'd expect a more dramatic backlash against unsecured debt when (or if?) default rates rise.

lostinrates

bdon wrote: »

Isn't the answer well-maintained social housing. I grew up in some and didn't feel "deprived" at all.
...

I think its only part of the answer. I think GOOD landlords remain a significant part of the answer, as do an overhaul of thetenancy regulations, giving long term tenants a bit more security of tenure. I think there remains and always will do, a significant place for private landlords as opposed to state provided housing, which should be available on a much simpler basis to those who really need it, but aiming for a transition into private rented for people able to work etc.

Where I think the answer really lies is a breakdown of the UK attidude(outside London) that renting is bad, an in a few areas, an increased sense of PERSONAL responsibility. Aiming to own a home in which you can live rent free in during your retirement is great....but relying on it to pay for a luxury lifestyle is highly dependant on how well your retirement correlates with the economic cycle it seems. Thus, if people could be convinced that taking responsibility, not just i home buying, bt in working, if savers stopped being penalised for actually saving and if more social housing were made available for people who really need it, and there will always be thise i the most utopian of societies (the poor elderly, those unable to work etc etc) in a more starightforward way that was neither shameful, complicated nor aspirational!, we'd be very close to crackig not just the housing issues but starting on a few of the social ones too.

(wondering if I got out of the wrong side if the bed this morning )