Halifax +2.6 % MoM

baileysbattlebus

the_ash_and_the_oak wrote: »

prob fair tbh. just curious when 1 bed flats became ftb homes and how thats worked out

Historically the most common type of property bought by FTB's was terraced.

2007 the split of terraces and flats for FTB's (don't know many bedrooms though) was 37% terraces and 37% flats. This was the first year this had happened.

In 2002 25% of FTB's bought a flat, 24% bought a semi and 45% bought a terrace.

I think we all know how much property went up between 2002 & 2007
for FTB's it was about 80% from around £95K to the average at the peak of £175k

But the deposits stayed roughly the same percentage of purchase price -19% in 2002 and 20% in 2007

the_ash_and_the_oak

baileysbattlebus wrote: »

Historically the most common type of property bought by FTB's was terraced.

2007 the split of terraces and flats for FTB's (don't know many bedrooms though) was 37% terraces and 37% flats. This was the first year this had happened.

In 2002 25% of FTB's bought a flat, 24% bought a semi and 45% bought a terrace.

I think we all know how much property went up between 2002 & 2007
for FTB's it was about 80% from around £95K to the average at the peak of £175k

But the deposits stayed roughly the same percentage of purchase price -19% in 2002 and 20% in 2007

The thing people miss is that it was just as hard to buy a house in the past as it is to buy a flat today imo

baileysbattlebus

nearlynew wrote: »

Even using the large spread of interest rates in your reply and punching them into a mortgage calculator for mortgages of 100k and 200k respectively produces a difference of only a couple of quid in monthly payments.
(for a proper repayment mortgage of course and not an interest only/renting from the bank mortgage)

Using 15% for a 100k house and a more realistic long term average of 8% for a 200k house produces a difference of several hundred pounds per month .

As an aside, when people talk of 15% interest rates causing the last housing crash of the early 90s they are talking out of their a*se. Without going into the nitty-gritty of what did cause it, rates were at 15 % for one day only. Or even just overnight if I remember correctly. (can't be bothered to look)

Well here it is - don't forget mortgage rates are not base rates - they are usually higher - go and look at 1989 to about 1992

the first column of figures is the base rate and the second are mortgage rates.

I lived through those rates and I wish I was talking out of my a*se.

The mortage rate was between 14.50% and 15.40% for nearly a year. This uses the Halifax variable mortgage rate - most people were on variable rates then.

http://www.moneyextra.com/dictionary/interest-rate-history-003455.html

Edited to add

I have to be honest here rates were often in double digits during the 1980s.
In 1982, a year which saw continuing industrial decline at home and war over the Falklands, there were 35 changes to the rate. By October 1989, it stood at 14.785 per cent. They were turbulent times.

Kenny4315

It seems pretty clear now the worse of th correction has occurred. Even I expected the correction to b close to 30-35% but let's face it it looks as if houses are a commodity that is going to increase in value in relation to salaries, mainly due to the shortgage of space near places of work. I can't see where another 10 to 15% is going to come from so it looks like it's curtains for all the would be house buyers waiting for hous price amageddon. Which is a bit of a shame for myself a I was intending to buy another few houses but it is not possible to get the income vs cost to stack up without the 30 to 35% drop, oooh well, must tak some solace in the fact my existing property is going to be worth more,so looks like my 40 year vacation is about to commence.

ad9898_3

Kenny4315 wrote: »

It seems pretty clear now the worse of th correction has occurred. Even I expected the correction to b close to 30-35% but let's face it it looks as if houses are a commodity that is going to increase in value in relation to salaries, mainly due to the shortgage of space near places of work. I can't see where another 10 to 15% is going to come from so it looks like it's curtains for all the would be house buyers waiting for hous price amageddon. Which is a bit of a shame for myself a I was intending to buy another few houses but it is not possible to get the income vs cost to stack up without the 30 to 35% drop, oooh well, must tak some solace in the fact my existing property is going to be worth more,so looks like my 40 year vacation is about to commence.

Ey, keep tellin' yerself that and you'll be fine;), you're obviously not old enough to remember the 24 monthly rises in the last house price crash, 1 swallow does not make a summer, still ignorance is bliss.

Kenny4315

I'm 39, and the signs throughout the year have been that the worst is over and the market has stablised around the 17.5 to 22.5% range. It is you who are in ignorant bliss, as the market is showing many positive signs, and the force of the recession is holding back interest rates, and in general things seems to be fairly solid now.

StevieJ

nearlynew wrote: »

.

As an aside, when people talk of 15% interest rates causing the last housing crash of the early 90s they are talking out of their a*se. Without going into the nitty-gritty of what did cause it, rates were at 15 % for one day only. Or even just overnight if I remember correctly. (can't be bothered to look)

One day only :rotfl: if you are going to be so offensive I suggest you check your facts

Kenny4315

I mean lets get serious, since September 2007, to date house prices are down about 17% at present, and we have had things happen that simply can't be believed, banks virtually collasping, massive businesses going under, a worldwide recession, etc, etc, etc. It is impossible for the next 20 months or so to have such catastrohic events on that scale, so why would house prices collaspe, maybe so small adjustments but nothing major

StevieJ

Kenny4315 wrote: »

I mean lets get serious, since September 2007, to date house prices are down about 17% at present, and we have had things happen that simply can't be believed, banks virtually collasping, massive businesses going under, a worldwide recession, etc, etc, etc. It is impossible for the next 20 months or so to have such catastrohic events on that scale, so why would house prices collaspe, maybe so small adjustments but nothing major

I am superstitous :eek: don't tempt fate

nearlynew

StevieJ wrote: »

One day only :rotfl: if you are going to be so offensive I suggest you check your facts

I suggest you do some checking of my post which contains that claim I made.