MSE News: Halifax: house prices up for third successive month

Thrugelmir

Really2 wrote: »

Indeed but you forget there are always 2 extremes (a high and a low)
To be equal.
So for every FTB buying at 125% LTV there was one buying at 50%LTV. (=87.5%LTV very near 06/07 levels

Otherwise your average would be, well above average

Interestingly this is where the statistics are deceptive.

Northern Rocks Together mortgage consisted of both a secured and unsecured element. So the unsecured loan would have been reported as just that, not a mortgage. And as such wouldn't have been reported as part of the purchase price.

Most people were using the unsecured loan to consolidate existing debt. Reducing their interest charges in the process but merely defering the inenvitable of repaying the capital balance further into the future.

I'm sure that there is regulation as to how much can be advanced against a property in the form of a mortgage. Above a 100% of LTV the loan agreement would take a different form and more than likely be written in commercial terms.

tomstickland

To compare the average prices of a fully active market to one where the bottom 80% has ground to a halt is nearly meaningless.I base my opinion on what I see on rightmove. Which is that things are not shifting unless the price is reduced from 2006 levels.Even a local estate agent said that "houses will sell if priced realistically." ie: not 2006 levels or higher.

tomstickland

IveSeenTheLight wrote: »

I'm thinking the low transactions is helping prices rise as the available demand compete against the quality low supply that is in the market

I'm sure your explanation might mean something, but it looks like a random collection of words to me.

Thrugelmir

IveSeenTheLight wrote: »

Accidental landlords are not all going to put their properties on the market rapidly increasing the supply all at the same time.

Some will be held on tenancy agreements.
Some may be happy to retain the property with the rental income they receive.
Some may see capital growth and keep as an investment

There may be a rush in a few years time. As in simple terms capital gains tax could potentially have an impact, after 36 months has elapsed.

Anybody in this position should read "ir283 private residence relief"

This can be found at http://www.hmrc.gov.uk/pdfs/1999_00/helpsheets/ir283.pdf

IveSeenTheLight

Thrugelmir wrote: »

There may be a rush in a few years time. As in simple terms capital gains tax could potentially have an impact, after 36 months has elapsed.

Anybody in this position should read "ir283 private residence relief"

This can be found at http://www.hmrc.gov.uk/pdfs/1999_00/helpsheets/ir283.pdf

I think any accidental landlord who keeps their property for three years then is likely to have moved into a position of keeping the property as a leased property.

You would be correct though that they would then be subject to capital gains tax on the profits.

That said, did they all become accidental landlords at the same time?

Additionally, capital gains is only applicable to the profit minus the personal allowance.

If they've leased it out because house prices were dropping and they could not sell, maybe there will not be much capital gainst tax to pay when their 36 months are up.

Finally, there was supposed to be the said rush of professional landlords when capital gains last changed to the 18%, there were much more landlords than the accidental ones you are referring to and the previous capital gains tax changes didn't incur the rush that people on here thought there would be

IveSeenTheLight

tomstickland wrote: »

I'm sure your explanation might mean something, but it looks like a random collection of words to me.

Pretty much was trying to suggest that the buyers are competing for the quality properties that are available.

If the transactions were higher, then maybe the buyers would be spread out through the current supply and there would have been less competition and thus less HPI.

IveSeenTheLight

the_ash_and_the_oak wrote: »

Yeah saw this on the other thread. at 90% LTV they offer 3.5x single income as well.

But think we were trying to find out who was offering 90% LTV at 4.5x salary (or greater) in the past

That's fine.
Many on here though say that 3.5 times single income should be the restriction, my point was that the lenders are not restricting it to single applications and offer it for joint

Thrugelmir

IveSeenTheLight wrote: »

I think any accidental landlord who keeps their property for three years then is likely to have moved into a position of keeping the property as a leased property.

You would be correct though that they would then be subject to capital gains tax on the profits.

That said, did they all become accidental landlords at the same time?

Additionally, capital gains is only applicable to the profit minus the personal allowance.

If they've leased it out because house prices were dropping and they could not sell, maybe there will not be much capital gainst tax to pay when their 36 months are up.

Finally, there was supposed to be the said rush of professional landlords when capital gains last changed to the 18%, there were much more landlords than the accidental ones you are referring to and the previous capital gains tax changes didn't incur the rush that people on here thought there would be

A lot of professionals did exit the market at the last change of cgt. Its worth remembering that they had made sizable gains due to the market rise between 1999 and 2004 alone.

A similar problem arises for people who have owned their homes for many years and now STR. I have a friend who rents out her old home in Brighton that was bought in 1986. Its now worth £850k. The gain is based on the original purchase price. So she will progessively incur a larger and larger tax bill. Shes considering moving back in and letting her partners house for a couple of years. As much as she tried the house hasn't sold.

mewbie_2

MSE News: Halifax: house prices up for third successive month
This is excellent news and thank so much for posting it. Please promise if they go up for a fourth month you will post again.

nollag2006

I think mewbie that this good news story will be repeated for quite a few months to come