EXODUS

deemy2004

This year over 350,000 Britains are taking advantage of the record high house prices in the Uk and selling up and moving abroad, mainly to the cheaper and sunnier mediterarian countries.

If the trend continues, more than likely over the next 10 years 5 million people are likely to relocate abroad, taking their equity with them.

Which does not bode well for the housign market for the NEXT 10 years , and possibly longer, at best were looking at rises in line with inflation i.e. approx 2%

At worse the equity withdrawl will lead to a depressed and declining housing market over the next 10 years.

Even worse would be if the trend continued on for 20 years !

Strong £, High House prices

Got Property ? Protect yourself, sell up

dougk_2

A fair few of the people moving abroard also retain their UK houses and let them.

Ex-pats also move back to the UK as well and we are getting lots of immigrents (many legal) coming to the country - its not all bad news! The company I work for , over 50% of the Uk staff are of a non-uk orginal origin (many from Europe and ex-Russian states)

Nobody knows how the house market is going to go!

deemy2004

If they are moving abroad, then they are taking capital out of the UK to purchase property abroad so they are taking cash out of the housing market instead of recycling it.

New immigrants arn't able to cover this growing deficit, and infact tend to also send a chunk of their earnings abroad i.e. back to country of origin thus are not consuming as much as the british nationals leaving the country wold. Thus it is a growing NET drain on the housing market.

Another drain on the housing market is so many people relying on the housing market for a pension. When so many people are betting in one direction, they tend to lose as the market discounts heavily weighted future scenerio's ahead of time.

alanobrien

Now that europe has expanded don't forget all those new europeans beating a path to our door to buy the property so readily vacated by those seeking the sun and sangria.

I suspect they will outstrip the supply and force prices even higher ;D

deemy2004

buy property ?

what with  ?  200 zlotties at 200 to the £

Were talking precambrian time buyers here......

They can just about afford to rent a room... never mind buy 3 bed semis...

Okay they are good for the future, distant future, but arn't going to make much difference with regardsthe exodus for the immediate future

dougk_2

As i tried to say, half the company I work for are made up of people of foreign nationality - many from Russia/Ukraine.
They get paid the SAME (or more) as we brits and because they expect less luxury items they have more cash to spend on housing and what I class as essential items. Certainly in the IT Market the staff orginating from the estern block countries often have more skills and practical experience and therefore get paid for that.

Also many of these club together as families and purchase a house together , unlike us who have large numbers of single people and couples owning houses.

Walletwatch

As i tried to say, half the company I work for are made up of people of foreign nationality - many from Russia/Ukraine.
They get paid the SAME (or more) as we brits and because they expect less luxury items they have more cash to spend on housing and what I class as essential items. Certainly in the IT Market the staff orginating from the estern block countries often have more skills and practical experience and therefore get paid for that.

Also many of these club together as families and purchase a house together , unlike us who have large numbers of single people and couples owning houses.

I agree. I think we should also not forget the fact that the market is currently at a matured stage for the Asians that came in as part of the IT and Finance industry booms and have held on. I personally know of at least a couple of dozen guys from countries like India, Pakistan and Sri Lanka, who have now finished five plus years in the UK and have picked up houses in the past two years, or are actively looking to close out on a house in the next six months (while they're price sensitive alright, they're trend insensitive, as they definitely are not waiting for any cooling off of the
market, etc) These guys are more savers than spenders, so while they wouldn't contribute too much to the economy by spending at the pubs and boutiques, a house is a sacrosanct investment for most of them.

deemy2004

With out consumption, you don't have employment and growth, and rising house prices.....