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Debate House Prices
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UK house prices face prolonged bear market
mystic_trev
Posts: 5,434 Forumite
British property prices benefited from a 25-year bull market since the 1980s, pushed up by low inflation and real interest rates, and the influx of millions of younger less well-off buyers who were suddenly able to get hold of mortgages, according to Lombard Street Research. But the organisation has given warning that homeowners must prepare for what could be a similarly long period in which economic forces work in the opposite direction.
http://www.telegraph.co.uk/finance/economics/houseprices/7557222/UK-house-prices-face-prolonged-bear-market.html
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Comments
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Are they saying 25yrs of Bear market for UK property?0
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You were first Mystic
'Just think for a moment what a prospect that is. A single market without barriers visible or invisible giving you direct and unhindered access to the purchasing power of over 300 million of the worlds wealthiest and most prosperous people' Margaret Thatcher0 -
It's happened in Japan, pretty much anyway, so it is possible. House prices do seem to be defying gravity for the time being though.
Houses are an obsession, amongst certain demographics in the UK. Oddly enough we seem to have ended up with an older generation absolutely hell bent on pricing their own children out of home ownership.
They can then use this extra money to give to their children so they can buy an expensive house from someone elses parent's.
And then at the end of it you have nursing home fees creeping up towards an average of £1000 per week.
There must be a flaw here somewhere...0 -
It's happened in Japan, pretty much anyway, so it is possible. House prices do seem to be defying gravity for the time being though.
There is always the comparison with Japan presented.
Looking very briefly, the ergonomics of how families live, the desire, the location (on fault lines) etc mean the market is so vastly different.
Yet it seems to be so easily comparable.
How about comparing with much closer to home Germany.
Again looking very briefly, they also have a much different outlook and desire on property, backed up with different laws in relation to tenancy laws.
I find it hard to compare the UK with Japan or Germany.
It's a bit like comparing apples with pears. there still both fruit but taste so much differently:wall:
What we've got here is....... failure to communicate.
Some men you just can't reach.
:wall:0 -
IveSeenTheLight wrote: »There is always the comparison with Japan presented.
Looking very briefly, the ergonomics of how families live, the desire, the location (on fault lines) etc mean the market is so vastly different.
Yet it seems to be so easily comparable.
How about comparing with much closer to home Germany.
Again looking very briefly, they also have a much different outlook and desire on property, backed up with different laws in relation to tenancy laws.
I find it hard to compare the UK with Japan or Germany.
It's a bit like comparing apples with pears. there still both fruit but taste so much differently
Absolutely, I agree. My only point is that Japan shows it is possible for house prices to fall for a very long time.0 -
Absolutely, I agree. My only point is that Japan shows it is possible for house prices to fall for a very long time.
The point is not how similar the UK is to Japan, but that it is possible for house prices to fall 80%.
Im not saying UK can crash 80% but Im saying it has happened before thats all.
It seems property bubbles are all over the world now.0 -
The point is not how similar the UK is to Japan, but that it is possible for house prices to fall 80%.
Im not saying UK can crash 80% but Im saying it has happened before thats all.
It seems property bubbles are all over the world now.
I think Japanese house prices as were (prior to that fall), shows how conservative and sensible UK house prices are currently .'Just think for a moment what a prospect that is. A single market without barriers visible or invisible giving you direct and unhindered access to the purchasing power of over 300 million of the worlds wealthiest and most prosperous people' Margaret Thatcher0 -
the difference between the UK and japan is thta when things go wrong in Japan they kill them selves, in the uk they go on strike and moan like spoilt children0
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Absolutely, I agree. My only point is that Japan shows it is possible for house prices to fall for a very long time.
Anything is possible, but are the fundamentals there for it to realistically happen.
Currently I'd say no chance, but then who know what the future brings?:wall:
What we've got here is....... failure to communicate.
Some men you just can't reach.
:wall:0
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