MSE news: Nationwide reports largest house price rise for over two years

Bloo_Loo · 27 August 2009 at 9:23AM

Heyman wrote: »

Largely depends on what mortgage you get and your deposit though doesn't it?

My mortgage is currently £700 a month from a 3-bed Semi, which is about £100-£150 less than a comparable property montly rental in the same area :beer:

did you buy this month? rents need to reflect current market conditions. my landlord spends more that £100 per month on bits and bobs.

Degenerate · 27 August 2009 at 9:25AM

Bloo_Loo wrote: »

what is worrying is in spite of billions spent to preserve the market, the results are so small....the piper will need paying soon enough...France just announced borrowing over a trillion Euros, US upping its borrowing, Germany saying it will rollover loans direct as banks arent willing....its all good news and house price rises will make our own country more and more competitive......NOT.

It's having a functional banking system that will make us more and more competitive. Homeowners recovering negative equity is helpful in that regard.

Dr.Octagon · 27 August 2009 at 9:27AM

Wow, didn't see that coming, anybody considering buying should consider it a bit more in my opinion. Will be interesting to see what shakybaby and carolt think about this ...

Bloo_Loo · 27 August 2009 at 9:27AM

Really2 wrote: »

it is less than 13% off!!! given deposits needed that is quiet close.
Average FTB deposit it 25%, What was it historicaly?

shows the needy average people are NOT buying...where does one get 40K for a 25% deposit?...well you could be using a Government scheme, personal loans, BoMD, inheritance and so on.

the first three are further borrowing...I dont feel houses based on 100% borrowing is sustainable...well, we know its not, the 2007 market proves it.

course, there are plenty of people with plenty of money, so I would imagine Hamish had a point when he used to bang on about poor people NOT ever buying.

again, that is not a sustainable position...but then the whole economy wasnt sustainable without further borrowing....draw your own conclusions...I have

Degenerate · 27 August 2009 at 9:28AM

I just realized, we forgot this bit:

Timber!!!!!!!!!!!!!!!

Really2 · 27 August 2009 at 9:29AM

Bloo_Loo wrote: »

I think we will find FTBs are not a major player in this market...how could they be?

Bloo_Loo wrote: »

shows the needy average people are NOT buying...where does one get 40K for a 25% deposit?...well you could be using a Government scheme, personal loans, BoMD, inheritance and so on.

Found the stat for you.
The numbers of FTB's coming to the market is increasing not decreasing.
http://www.express.co.uk/posts/view/120021/First-time-buyers-help-push-up-mortgage-lending-by-23-

About 45,000 mortgages were granted in June, the fifth consecutive monthly increase and the highest level for a year, the Council of Mortgage Lenders said.
This is compared with 36,500 mortgages taken out in May.
Of these, the biggest rise was in the number of first-time buyers with 17,200 mortgages taken out by people buying their first home – a rise of 26 per cent on May.

Bloo_Loo · 27 August 2009 at 9:30AM

Degenerate wrote: »

It's having a functional banking system that will make us more and more competitive. Homeowners recovering negative equity is helpful in that regard.

having a functioning banking system is helpful, wont make us competitive as banking produces no wealth.it just puts capital holders in touch with producers of wealth...(whether trading houses is creating wealth is highly questionable)...but how much more tax do you think its worth pumping to keep a few more banks solvent (in theory).

the point is, there is a limit....a tipping point where no further borrowing is possible without dire consequences.....consequences where whether or not you bought a home will be the last thing on your mind.

chucky · 27 August 2009 at 9:34AM

Bloo_Loo wrote: »

did you buy this month? rents need to reflect current market conditions. my landlord spends more that £100 per month on bits and bobs.

let me get this right... your landlord sets the correlation betweenr UK rents versus UK property prices. what a narrow minded view!!

chucky · 27 August 2009 at 9:34AM

Bloo_Loo wrote: »

that us true...but how much more tax do you think its worth pumping to keep a few more banks solvent (in theory).

the point is, there is a limit....a tipping point where no further borrowing is possible without dire consequences.....consequences where whether or not you bought a home will be the last thing on your mind.

it seems that 2009 house prices have found 2009 lending limits...

borntobefree · 27 August 2009 at 9:41AM

The ending of the suspension of stamp duty in December might put upward pressure on house prices over the next few months - especially in a rising market. Or do you think it will have no effect?