House Prices - Radio 4 Program Money Box

ruggedtoast

Can someone tell me please where these putative mortgage rates are coming from, and where an "average" house is £160k?

I have seen as many 160k houses now as I have seen 140k houses in February. Rightmove place the average house price at around £220k. They reported a fall in asking prices last month. Their average seems about right to me for London and the SE.

If you want a house for 220k and are lucky enough to have a £22k deposit you can go on Moneysupermarket et al and it will give you nada. There are no mortgages for you.

If you are even luckier and have £50k you'll be looking at paying about £1200 plus for a fix. Many of these will want to lock you in for the next 5 years.

People with houses can keep making offers on one anothers places and sticking Sale Agreed on the boards outside but at some point a first time buyer has to come in at the bottom or no one is going anywhere.

HAMISH_MCTAVISH

StevieJ wrote: »

This board is like getting a cross line on the telephone, I think someone on 100k could buy a touch more than a 2 bedder where I live

Here too. And we have some of the highest prices in Scotland..... In fact, our prices are higher than most places north of Birmingham.

A 5 bed detached in a nice suburb can be had for 350K. Or less than 200K if you're willing to commute 30 minutes.

A 2 bed flat can be had for as little as 125K. Or 75K if you're willing to commute.

A 1 bed flat for 75K, or 50K if able to commute.

Hardly a problem.....

Dan:_4

mewbie wrote: »

I'd worry Dan. 180k would depress me. I know you big shots on here think its just spare change.

Thats fine, if it would depress you, then would just have to keep saving a deposit to bring down the 180k. Like I have said, it comes down to personal choice.

Dan:_4

wageslave wrote: »

Hasn't it crossed your mind that is exactly why we are in this mess.

That's not the point. My statements are about what is possible today.

FWIW it's more 125% Mortgages, self-sert mortgages, poor credit history mortgages etc that caused this mess - not 10% LTV mortgages, which is what is being disucssed here.

Dan:_4

shakerbaby wrote: »

I don't know what is more insane, the fact that someone on nearly 100,000 can just afford a 2 bedder or the bulls who blindly believe that this is sustainable. :eek:

That is not what LIR said.

Anyone on nearly £100,000 can afford a lot more then a 2 bed.

Dan:_4

ruggedtoast wrote: »

Can someone tell me please where these putative mortgage rates are coming from, and where an "average" house is £160k?

I have seen as many 160k houses now as I have seen 140k houses in February. Rightmove place the average house price at around £220k. They reported a fall in asking prices last month. Their average seems about right to me for London and the SE.

If you want a house for 220k and are lucky enough to have a £22k deposit you can go on Moneysupermarket et al and it will give you nada. There are no mortgages for you.

If you are even luckier and have £50k you'll be looking at paying about £1200 plus for a fix. Many of these will want to lock you in for the next 5 years.

People with houses can keep making offers on one anothers places and sticking Sale Agreed on the boards outside but at some point a first time buyer has to come in at the bottom or no one is going anywhere.

Moneysupermarket.co.uk is cra.p.

lostinrates

Dan: wrote: »

That is not what LIR said.

Anyone on nearly £100,000 can afford a lot more then a 2 bed.

Its a fair if underdeveloped conclusion to draw from what I said though.

This person could choose to commute further: but then ofcourse, this would reduce the availabilty of funds for monthly repayment. (there is also a ''rule'' about remaining withing M25 on weekdays which limits choice a little but not totally unconceivably for the average person). If the person were to relocate from London I guess they would no longer be on that salary! Of course, thats pre tax. After tax, what you have is significantly less!

Running_Horse

brit1234 wrote: »

No one else is buying.

Don't normally post here as long term prices will rise or fall to their correct level with or without cheerleaders on both side of the pointless debate.

But, just did a Rightmove search of my hometown Cambridge, which brings up 294 properties for sale, and rises to 539 when you include sold STC.

Clearly someone is buying in that overpriced city.

HAMISH_MCTAVISH

Running_Horse wrote: »

Clearly someone is buying in that overpriced city.

If people are willing and able to buy, then by definition it cannot be "overpriced".

mewbie_2

Running_Horse wrote: »

Don't normally post here as long term prices will rise or fall to their correct level with or without cheerleaders on both side of the pointless debate.

But, just did a Rightmove search of my hometown Cambridge, which brings up 294 properties for sale, and rises to 539 when you include sold STC.

Clearly someone is buying in that overpriced city.

The debate is not pointless. Indeed my therapist says it helps me to deal with certain issues.

You quote Cambridge - hardy a typical place. The city of dreaming spires, nestling in its own micro climate in the Thames Valley, it has long been sought after by bohemian types who want to pretend they went to the Polytechnic there. They are the only people remaining who can afford to buy, as they don't spend so much on personal hygiene.