Halifax +2.6 % MoM

chucky

the affordability factor is getting closer and closer to the long term average... rates do play a factor though.

from this months Halifax report -

The house price to earnings ratio – a key affordability measure - has declined by from a peak of 5.84 in July 2007 to an estimated 4.36 in May 2009. The ratio is now at a level last seen in January 2003. The long-term average is 4.0.

Lower interest rates have boosted affordability. The proportion of disposable earnings devoted to mortgage payments has fallen significantly over the past 18 months. Nationally, typical mortgage payments for a new borrower have declined from a peak of 48% of average disposable earnings in 2007 Quarter 3 to 31% in 2009 Quarter 1. Mortgage payments relative to earnings are now below the long-term average of 37% recorded over the past 25 years.

Improvements in affordability have helped to raise the proportion of first-time buyers. First-time buyers accounted for 40% of all those purchasing a home with a mortgage in March; the highest percentage since April 2005. The number of first-time buyers, however, remains very low and at 12,500 in March 2009 was one-third lower than a year earlier.

http://www.lloydsbankinggroup.com/media/pdfs/research/HousePriceIndexMay2009.pdf

Conrad

the good ship bargain has upped anchor and steaming away

lostinrates

Dan: wrote: »

They won't push me out my own country tho.

I don't know if you re one of those who might have a reason to feel differently or not: we are. My husband, many might recall, is Jewish. While he is not particularly sensitive its fair to say there are concerns at times like this: we're only one generation away from this, his grandmother was German. Relatives of oour parents' generation did not survive what happened in German post 1930s. ere not by any means expecting that, but we'd be prety foolish to not consider it with a tiny opercentage of our mind.

As for tax: yes we can avoid it, we can leave UK, as it seems, younger graduates are being advised!

System

HPC.co.uk are going for predictable and slightly moronic:

LOCAL ELECTION DAY - AND BINGO HOUSE PRICES ARE UP!!!!

"STATE OWNED BANK MANIPULATES HPI DATA "...

...approach.

wolfman

mitchaa wrote: »

Im so tempted to bump late 2008 threads back to the top as i got flamed as did many other bulls with my predictions and estimates.

2009 is going to be far worse:rotfl:But then that would just be childish

I hate to say, but i told you so:p

2.6% MOM is MASSIVE, bears are well and truly in hiding, where is Carol, Foxtons, Pizzagirl and all that lot:D

Percentage increases can show a trend, but purchases are so low, (historically low?) that the figures can easily get skewed. The lower the number of purchases goes, the less meaningful the % house price value is.

I'm still gonna wait. As mentioned interest rates are historically low, and the warm weather is here, so people will be looking to get a mortgage deal while they can, and move when it's nice and warm. It could be spike. Who knows.

As long as purchases stay low, the house market will be slow, so price increases don't mean a huge amount. They could increase by 20%, but if only a small percentage a being sold it indicates a) prices are too high, or b) people can't get that sort of credit.

Entertainer

Dan: wrote: »

People can buy a house on 3.5x their earnings.

Exactly. Some people's expectations as a FTBer are way to high.

Round my way, you can't even buy a one bed flat on 3.5x earnings.:mad:

Dan:_4

Entertainer wrote: »

Round my way, you can't even buy a one bed flat on 3.5x earnings.:mad:

You have to earn something resonable, i.e. min wage will not do.

the_ash_and_the_oak

Dan: wrote: »

You have to earn something resonable, i.e. min wage will not do.

agree with this. I'm an average earner (for London) on 35k, not really enough for a one bed imo.

Ronaldo_Mconaldo

the_ash_and_the_oak wrote: »

agree with this. I'm an average earner (for London) on 35k, not really enough for a one bed imo.

That's the point. Instead of complaining that things are too expensive therefore the country needs to be brought to its knees so that people (ie you) can afford what most people have been able to afford for years, you should get out there a bit! Get an education, get some skills and then get a better job so you can afford a house. Either do that or don't and rent a room off of someone who already has done all of that.

That's the problem with this country, if something is hard to get, don't work for it, simply throw your toys out of the pram and if enough of you do the same then you'll get what you want.

neas

why should a house be hard to obtain? Can we not provide decent living space for people in the 21st century? Or are reverting to poor class and rich class or medieval times?

Your logic is a lil flawed.