Nationwide +1.3 (-6.2 YoY)

Really2

nearlynew wrote: »

It was an inheritance and I sold in order to pay off my mortgages.

Cheers. Sorry for the nosey. But I am not as "up-to-date" with posters as I used to be:)

Graham_Devon

Uh ho, here we go, seen this "nearlynew is a liar" before.

ruggedtoast

Today 9:16 AM chucky

Quote:


Originally Posted by ruggedtoast
Nominal property prices are counted as part of a countries wealth, price inflation and the attendant lending goes towards GDP I believe.

The number of property transactions at the moment are very low, and few first time buyers can afford to get on the ladder. So we're looking at wealthier people and those who've some cash who been watching the market for the last year, penting up their demand (people like me to be honest).

this is something that people on here struggle with. it may not be right but it's reality.

average salary doesn't equal to buying a home.

from this months stats:
Quote:
the average Nationwide House price is £158,871 minus a 10% deposit = £142,983 so the average income for a homeowner is £47,661.
Quote:

if we use a 25% deposit the average income is £39,717...


this means that there will be a minimum average salary that people will be able to buy a home.

was the low point of £147,776 in February the bottom for house prices?

prices have increased 7.5% since then...

I think thats attainable for a couple - what I dispute is the assertion that an average house is circa £160,000. IME markets where a 3 bed terrace (for example) cost that little are usually ones where the local salary is well below that.

In London and the SE you're not going to get much for less than a quarter of a million, but average salaries (30k something I beleive) dont support that.

This situation isnt improving with the current state of the labour market.
It seems that prices are destined (for the timebeing at least) to always be ahead of what "average" people can afford.

Really2

Graham_Devon wrote: »

Uh ho, here we go, seen this "nearlynew is a liar" before.

Read the above post before posting you usual drivel.

unlike you I like to know peoples circumstances for things rather than spouting !!!! I know nothing about.:rolleyes:

Are you actually trying to become the most loathed poster?

chucky

ruggedtoast wrote: »

This situation isnt improving with the current state of the labour market.
It seems that prices are destined (for the timebeing at least) to always be ahead of what "average" people can afford.

i agree with you but unfortunately it's the way it is... if this is the case does this mean that more people will be forced to rent because they can't afford property?

have some firms seen this as a future profitable market for themselves

Aviva Investors, a unit of British insurer Aviva (AV.L), said on Monday it is in the process of setting up a fund with property brokers CB Richard Ellis to buy and rent out new UK residential properties.

An Aviva spokesman said there is no planned launch date for the fund as it is still at the early stages, and declined to confirm a Financial Times report earlier on Monday that the fund will raise up to 1 billion pounds ($1.65 billion).

http://www.reuters.com/article/rbssFinancialServicesAndRealEstateNews/idUSLR23138720090727

Dan:_4

ruggedtoast wrote: »

I think thats attainable for a couple - what I dispute is the assertion that an average house is circa £160,000. IME markets where a 3 bed terrace (for example) cost that little are usually ones where the local salary is well below that.

In London and the SE you're not going to get much for less than a quarter of a million, but average salaries (30k something I beleive) dont support that.

This situation isnt improving with the current state of the labour market.
It seems that prices are destined (for the timebeing at least) to always be ahead of what "average" people can afford.

You can get an average house cheaper then £250,000 in the SE.

Most people tend top buy with joint mortgages which gives the buyer much more spending power. For as long as this continues it will always be difficult for an average earner to buy an average house by themselves.

Dan:_4

Graham_Devon wrote: »

Uh ho, here we go, seen this "nearlynew is a liar" before.

Graham - is your purpose to ruin threads and cause arguements?

ruggedtoast

julieq wrote: »

It actually appears to be snaring more bears than "bulls", most of the "bulls" here have been pointing out that stagnation is more likely (which is what the NW suggest) following a shortish term effect because of pent up demand, whereas the bears are in a state of advanced lather at the idea that prices are going up again.

I agreee Julie, But there are people who are on the brink with house prices and have been holding out for ages. A few months of apparent rises can tip you over if your pinning it all on another 10% drop.

The fact is that British people, on the whole, arent that well off anymore. The definition of an affluent country isnt one where theres 50% government debt, few people able to buy a property, and an increase in sellers likely to precipate severe falls.

In this kind of environment only the really wealthy really profit much. The scenario of the average Joe profiting from this economic hell hole Brown has created was never going to happen.

julieq

This is one of the points I've been making really, which is that seen as a business proposition, residential letting looks good at the moment so it's really not surprising funds have been set up to do it.

In fact the Aviva fund wouldn't be a bad place to save deposit money - if the housing market goes up you'll get capital gains which will track the rise in the market, if it falls it's a bad time to buy anyway but you get rental income.

But the main thing to note here is that if this is a good business proposition, businesses will pay the price of entry on a purely p&l basis and this may mean beating private individuals to the houses involved until it stops being a good return/risk proposition.

chucky

Graham_Devon wrote: »

Could be something to do with the North vs South.

A lot more equity and wealth in the South. If sentiment is high, that wealth could be being used?

maybe - as well as maybe the withdrawing of savings for to fund larger deposits. it may be the case.

ruggedtoast wrote: »

More good news for UK Plc:

Savers drain £2.3bn from building societies

• Biggest drawdown of cash for 54 years
• Fears banks will dominate home loans


The difficulties facing building societies were highlighted today with figures released showing they suffered the biggest monthly outflow of savings for 54 years in June — and warnings of continued withdrawals as unemployment forces savers to dip into their nest eggs.

http://www.guardian.co.uk/business/2009/jul/29/building-societies-record-savings-withdrawal