where do you think house prices will be in 10 years?

ukcarper

hundredk wrote: »

Supply and demand - you can only get what is within your means.

Income:House price ratio has increased significantly since last boom, hence ppl buying what they may not realistically be able to afford. http://www.mortgageguideuk.co.uk/first_time_buyers/mortgage-income-ratios.html

Same thing with easy credit.

Stands to reason if you can only get a mortgage of 3x income that you can't afford as much as 5-6x.

why thats not what happened in the early 70s

ess0two

pickles110564 wrote: »

Yes but if people started off at the bottom of the price range then moved up in sensible steps there would be no problems. However all the doom mongers expect to jump straight in to a 5 bed detached with an acre of land, they need to get real.

Its taken me 20yrs to get where i am now,yet most want it tomorrow for little or no effort.

sabretoothtigger

Dan: wrote: »

Im talking about nominal

12 years apparently so that'd be about 2020 then

chucky

sabretoothtigger wrote: »

12 years apparently so that'd be about 2020 then

why doesn't it go before 1975 - would it be because it might make the hpc.co.uk graph not look as good?
i wonder what happened just before 1975 :rolleyes::rolleyes:

These secondary banks, like the larger institutions, had been lending based on the then recently rising housing prices in the late 1960s and early 1970s, and borrowing heavily to hold the loan assets.

On 19 December 1974, a 1971 rent freeze by the Heath government was rescinded, and the Bank of England, which had severely restricted the supply of credit for housing in 1971 release greater funds. [2][3] The Bank of England's regulatory powers over lenders were increased in the 1979 Banking Act to prevent a repeat of the crisis. Despite the recovery of Housing prices and lending in 1975, inflation continued to rise, leading to greater economic, labour, and political problems for Britain.

http://en.wikipedia.org/wiki/Secondary_banking_crisis_of_1973%E2%80%931975

Really2

sabretoothtigger wrote: »

12 years apparently so that'd be about 2020 then

That graph is inflation adjusted not nominal.

Dan:_4

chucky wrote: »

why doesn't it go before 1975 - would it be because it might make the hpc.co.uk graph not look as good?
i wonder what happened just before 1975 :rolleyes::rolleyes:

Because this is a favourite graph which shows HPCers what they want. Not interested in the real facts.

Dan:_4

ess0two wrote: »

Its taken me 20yrs to get where i am now,yet most want it tomorrow for little or no effort.

I think this is the biggest problem. People seem to expect to buy a 3 bed semi in a decent area straight out of uni. When I was a FTBer I had a small 1 bed flat in an area I didn't want to live and built up from there.

ukcarper

Dan: wrote: »

I think this is the biggest problem. People seem to expect to buy a 3 bed semi in a decent area straight out of uni. When I was a FTBer I had a small 1 bed flat in an area I didn't want to live and built up from there.

I think your right I did manage to buy a terrace but it was 20 miles from where I wanted to be

Dan:_4

People complain about not being able to get on the housing ladder - it's because they are trying to jump on at the half way point - start at the bottom and work up like everyone else.

ess0two

Dan: wrote: »

I think this is the biggest problem. People seem to expect to buy a 3 bed semi in a decent area straight out of uni. When I was a FTBer I had a small 1 bed flat in an area I didn't want to live and built up from there.

I started in a 2 up 2 down terrace,these are available at the mo for £70k tops in my area.
Perhaps not the something to aspire to,but it got me started,2nd and 3rd hand furniture was the norm also.
2 moves later and my current gaff is spot on,but it took time and effort.