At least a decade for prices to return to 2007 levels.

ad9898_3

A prediction I have made on here several times, using history of the last crash as evidence. One particularly interesting point is his prediction that banks will now scrap 'affordability' as a way of handing out mortgages and returning to income multiples.

This would be great news if this were to happen, house prices would then only increase in line with incomes, which would help stop any future HPI getting out of hand as it has done this time.


http://www.telegraph.co.uk/finance/economics/houseprices/3885883/UK-house-prices-wont-recover-for-a-decade.html

sabretoothtigger

10 years seems optimistic to me, not trying to gloomy or anything since I hope prices will stabilise soonish

We are fairly certain the high prices were an incorrect pricing, factors not to be repeated so it represents a spring high tide mark. Besides some bad inflation (ie not real value) maybe I dont see that value being exceeded so soon as 10 years

Cat695

I best get a ten year fixed rate then

besonders1

I think ten years time is a bit too soon, as I can't see income levels actually rising to 200% in line with house prices otherwise we will just see another crash.

sabretoothtigger

Are you able to get 10 yr fixed rates? Surely that must represent the best deal at the moment unless it really were uncompetitive

amcluesent

I'm awaiting another 1% off the BoE rate (there IS an election looming after all!) then lock in to 10years of cheap money.

By 2011 inflation will be 10%+, don't even ask what interest rates will be under the IMF's management of our money supply to restore fiscal order.

mitchaa

10yrs my ar*e.

Who on earth are these ''experts'':rolleyes:

I dont even think it will take 5yrs, 2010 at some point will see some good HPI, as will 2011.

Max_Headroom_3

With the money coming from where..?

mitchaa

Max_Headroom wrote: »

With the money coming from where..?

The old banks dont have any money argument

95% mortgages are already back, quite a few of them aswell. People have been saving good size deposits the last 12-18mths or so and are just looking for the bottom of all of this in order to buy.

As soon as that happens, great influx of buyers, houses start to rise again. Times have moved on from the last crash that many refer too, we are a lot more greedy now and our attitudes to housing over the last 10yrs or so have changed 10 fold.

Massive numbers are awaiting the bottom, many of them will have saved considerably.

Who knows eh, my guesswork is only as good as the next persons;)

penguine

mitchaa wrote: »

I dont even think it will take 5yrs, 2010 at some point will see some good HPI, as will 2011.

How do you define "good HPI"? In your opinion, what would be the ideal percentage rate of increase in house prices year on year?

skap7309

mitchaa wrote: »

The old banks dont have any money argument

95% mortgages are already back, quite a few of them aswell. People have been saving good size deposits the last 12-18mths or so and are just looking for the bottom of all of this in order to buy.

...Lenders also continue to withdraw from the mortgage market, research from Credit Suisse shows. The number of mortgage deals available last week was 2,336 – 86pc less than what was available in June 2007...