British House Prices Probably Won’t Fall This Year, RICS Says

Really2

http://www.bloomberg.com/apps/news?pid=20601087&sid=aqgOgyQxeU60&pos=7

March 2 (Bloomberg) -- U.K. house prices probably won’t fall this year as the shortage of homes and low interest rates support the property market, the Royal Institution of Chartered Surveyors said.

“With housing supply continuing to be tight and interest rates likely to remain low, it seems unlikely that prices will dip again,” the London-based lobby group said in a statement. “Activity will still be constrained, so that recovery will continue to be slow, particularly outside of London and the southeast.”

The report contrasts with Bank of England policy maker Kate Barker’s comments last week that there may be further “adjustments” in the housing market as banks curb lending. Almost nine out of 10 Britons say buying a home is a “sensible investment” even after the U.K.’s worst housing slump in three decades, a survey by YouGov Plc published today showed.

“The recovery figures for the last nine months of 2009 indicate as much the scale of the market collapse which occurred between autumn 2007 and spring 2009 that any true recovery in market activity,” RICS said.

Stagnation by the look of it. (Well that is what I think)

LisbonLaura

Really2 wrote: »

Stagnation by the look of it.

Indeed. Or the last of the (record breaking) spinning plates.


Point of order (if I may?) - doesn't McTavish have exclusive posting rights to such topics? - i.e. those that link to VI rolloks

Blacklight

Although I can't see any major increases this year based on the fact that wage inflation isn't rising (if you were an employer, why give away free margin to your employees when you have an excuse as good as this?). There are plenty out there who have been filling their coffers with the savings on their mortgages due to the lower rates.

I wouldn't surprise me if they took the opportunity to buy while prices are lower thus pushing up the demand a little to bridge the gap until wages increase again in line with prices.

Nosht

Really2 wrote: »

http://www.bloomberg.com/apps/news?pid=20601087&sid=aqgOgyQxeU60&pos=7

March 2 (Bloomberg) -- U.K. house prices probably won’t fall this year as the shortage of homes and low interest rates support the property market, the Royal Institution of Chartered Surveyors said.


Stagnation by the look of it. (Well that is what I think)

Which means that when things finally settle down (2,3,4,5 . . . years time???) prices will really take off due to lack of housing & BIG demand unless mass illness, pestilence, flood or famine is fashionable then. :eek:

Regards,

N.

Pete111

I'm still hearing lots of anectodal noises from SW london (and London in general) re continuing rises.

Isolated maybe but pleasing for yours truly. Time will tell of course.

P

MissMoneypenny

Pete111 wrote: »

I'm still hearing lots of anectodal noises from SW london (and London in general) re continuing rises.

Isolated maybe but pleasing for yours truly. Time will tell of course.

P

My aunt withdrew some equity from her house in London, a couple of years ago. She was telling me house prices have dropped since then in her area. I checked on ourproperty.co.uk and she was right. The asking prices on RM are a long way down from the 2007 selling prices.

Still can't sell my mother's house in a well thought of, easy travel to the city, part of the SE:( Gonna have to drop the price soon, as we want her to cash in on this calm before the storm.

I have been watching a house I sold a few years ago, stuck on the market for 3 years now. They still have it on for the same asking price as they originally put it on for in 2007! They have changed EA 3 times.

Graham_Devon

Really2 wrote: »

March 2 (Bloomberg) -- U.K. house prices probably won’t fall this year as the shortage of homes and low interest rates support the property market, the Royal Institution of Chartered Surveyors said.

That's all fine, and probably correct.

However, it does leave the question as to what happens when interest rates do rise, and more properties do come to the market.

What it's basically saying is that there looks to be stagnation, at the lowest interest rates on record, and an abnormally low turnover of properties.

So leaves me wondering what will happen when the turnover is no longer that abnormal, and interest rates are on the rise.

Really2

Graham_Devon wrote: »

That's all fine, and probably correct.

However, it does leave the question as to what happens when interest rates do rise, and more properties do come to the market.

What it's basically saying is that there looks to be stagnation, at the lowest interest rates on record, and an abnormally low turnover of properties.

So leaves me wondering what will happen when the turnover is no longer that abnormal, and interest rates are on the rise.

We will be well out of recession before base rate hits pre crash levels IMHO.

Should be a fairly normal market then.

Really2

MissMoneypenny wrote: »

Still can't sell my mother's house in a well thought of, easy travel to the city, part of the SE:( Gonna have to drop the price soon, as we want her to cash in on this calm before the storm.

Sounds like a lot of disruption for a older member of society (I presume they are past retirement age) to go through. A new "storm" is not a certain event.
Or am I reading it wrong and the main reason for selling is not because of a belief in new "storm" is coming?

Graham_Devon

What's normal?

100 - 125% mortgages? Because that's what this "normality" was based on before the crash.

I don't think that's coming back.

Really2

Graham_Devon wrote: »

What's normal?

100 - 125% mortgages? Because that's what this "normality" was based on before the crash.

I don't think that's coming back.

Transaction levels and type of transactions (EG less repos more job security etc) no mention of mortgages.

You can come across a bit hysterical some times GD.