Steady increase in June house prices

Former_MSE_Guy

This thread is to discuss the following news story:

Steady increase in June house prices

Max_Headroom_3

Ultimately property prices have to be sustainably affordable.

They're not yet.

gjchester

Max_Headroom wrote: »

Ultimately property prices have to be sustainably affordable.

They're not yet.

Ultimatly supply and demand need to be balanced to achieve that. It's not as evidenced by long council waiting lists.
As long as demand is higher than supply prices will rise, given the goverment is not investing enough (IMHO) in social housing (and both Labour and the Conservatives are to blame) then prices will rise. This recession will probably be a small drip in the relentless price rise of houses.

Treadmill

A house near me just sold for the full asking price of £230K this month, It was bought as a new build last June for 200k...

baileysbattlebus

I agree that the longterm price for houses will probably increase - but I think the monthly data releases will show small increases and decreases.

The longterm upward trend will continue - because unlike the US and Spain we don't have huge swathes of unsold new builds to get rid of.

And as gjchester says until we start to build significant amounts of social housing (that won't ever become RTB), people will still buy property, whether it be for BTL or a home.

People talk about affordable housing - we need affordable rentals not just affordable ownership.

Affordable, secure rental property would help keep house prices down.

ad9898_3

MSE_Guy wrote: »

This thread is to discuss the following news story:

Steady increase in June house prices

No need, we already started a slanging match over two hours ago in another thread.;)

Max_Headroom_3

gjchester wrote: »

Ultimatly supply and demand need to be balanced to achieve that. It's not as evidenced by long council waiting lists.
As long as demand is higher than supply prices will rise, given the goverment is not investing enough (IMHO) in social housing (and both Labour and the Conservatives are to blame) then prices will rise. This recession will probably be a small drip in the relentless price rise of houses.

You're missing the one element in that theory that everyone else missed when they jumped on the "supply and demand innint, house prices can only go up" bandwagon prior to it crashing off the rails, and that is affordability.

It's all very well having long council waiting lists and thus plenty of theoretical demand, but if all those people cannot afford to buy at current prices and cannot afford a rent that justifies landlords buying at current prices then that "demand" does not (cannot) actually exist.

There's enough "demand" for second-hand Aston Martins compared to cars built for prices to increase to the stratosphere in theory, how many people would love an Aston compared to the number of cars out there? In practice they fell through the floor for a while as most of us may want one, but we can't afford one. So that theoretical "demand" is null and void. Same principle.

Ultimately houses (and second-hand Aston Martins) must be sold at a level that enough people who want them (and can afford them) can absorb the amount for sale.

We're some way off that yet (for houses anyway, low production of Aston Martins means they've probably balanced out and are apparently on their way back up now).

StevieJ

ad9898 wrote: »

No need, we already started a slanging match over two hours ago in another thread.;)

Call that a slanging match, we used to have some real nasties

StevieJ

Max_Headroom wrote: »

You're missing the one element in that theory that everyone else missed when they jumped on the "supply and demand innint, house prices can only go up" bandwagon prior to it crashing off the rails, and that is affordability.
.

The Nationwide chart show affordability down below the long term average and way down on the peak in the late 80's early 90's 'so it must be affordable innit' we are now waiting for liquidity.

Max_Headroom_3

Well charts are lovely of course, but meanwhile in the real world in my (fairly typical) area, a typical young persons wage is £15-£20K.

And a tiny 2 bed shoebox starter home is £120K (was £150K). Or six to eight times salary.

Doesn't sound everso affordable to me.

PasturesNew

MSE_Guy wrote: »

This thread is to discuss the following news story:

I'd not call monthly published figures "news".

And why start a thread about this when we already have one running.

It's annoying.

I feel like I wandered into 1984.