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Debate House Prices


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UK house prices not set to recover for another ten years, says PWC

245

Comments

  • Really2
    Really2 Posts: 12,397 Forumite
    10,000 Posts Combo Breaker
    carolt wrote: »
    No - reread any one of the many articles.

    I did Carol, I suggest you do the same.
    John Hawksworth, head of macroeconomics at Pricewaterhouse Coopers, warned: 'House prices remain vulnerable to setbacks.'
    His analysis is based on 'real' house prices, that is the value of your home if the impact of inflation is ignored.
    Read more: http://www.dailymail.co.uk/news/article-1294196/House-price-slump-decade.html#ixzz0tYIRU6wg
  • System
    System Posts: 178,377 Community Admin
    10,000 Posts Photogenic Name Dropper
    Really2 wrote: »
    I thought PWC were calling "Real Term Falls" in other words stagnation.

    That is not going to help many own unless they get wage inflation.
    Housing is a risky asset that is not guaranteed to generate positive real returns in the future even though this has been the pattern in the past."
    The "real terms" forecast by PwC includes consumer pricing adjustments that take into account the goods and services you can buy in 2020 compared with 2007
    There is a 70pc chance of prices falling further in real terms by 2015

    It's complicated :)
    This is a system account and does not represent a real person. To contact the Forum Team email forumteam@moneysavingexpert.com
  • HAMISH_MCTAVISH
    HAMISH_MCTAVISH Posts: 28,592 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    carolt wrote: »
    No - reread any one of the many articles.

    The PWC analysis is based on 'real' house prices, that is the value of your home compared to chocolate bars and bananas.

    The amount of money you pay will continue to rise, as most likely will the multiple to wages.

    RICS also show the following, that you obviously missed.....
    Price predictions vary across the country, but surveyors in London and Scotland were still expecting prices to rise in the coming months.
    “The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.

    Belief in myths allows the comfort of opinion without the discomfort of thought.”
    -- President John F. Kennedy”
  • Really2
    Really2 Posts: 12,397 Forumite
    10,000 Posts Combo Breaker
    Joeskeppi wrote: »
    It's complicated :)

    I misread it obviously.:D
  • chucky
    chucky Posts: 15,170 Forumite
    10,000 Posts Combo Breaker
    Really2 wrote: »
    I thought PWC were calling "Real Term Falls" in other words stagnation.

    That is not going to help many own unless they get wage inflation.
    unfortunately what they haven't realised is that this hurts wannabe FTBs more than everyone.

    so much for posting the same story 8 times today
  • Exocet
    Exocet Posts: 744 Forumite
    chucky wrote: »
    unfortunately what they haven't realised is that this hurts wannabe FTBs more than everyone.

    so much for posting the same story 8 times today
    So if FTBs get hurt, what happens to the housing market?
  • chucky
    chucky Posts: 15,170 Forumite
    10,000 Posts Combo Breaker
    Exocet wrote: »
    So if FTBs get hurt, what happens to the housing market?
    they have to live somewhere so they rent and we all know who that helps :)
  • Exocet
    Exocet Posts: 744 Forumite
    chucky wrote: »
    they have to live somewhere so they rent and we all know who that helps :)
    Ah I see. So the gap will be filled by BTL. Do you think there will be enough people wanting to invest in BTL over the next few years to make up for any gaps in FTBs?
  • chucky
    chucky Posts: 15,170 Forumite
    10,000 Posts Combo Breaker
    Exocet wrote: »
    Ah I see. So the gap will be filled by BTL. Do you think there will be enough people wanting to invest in BTL over the next few years to make up for any gaps in FTBs?
    errr no but now that you mention it maybe...

    where and in whose properties are all these people going to be living that can't afford to buy?

    btw there not going to be living in social or local authority housing... private rentals will have an increased demand... 100% guaranteed....
  • Graham_Devon
    Graham_Devon Posts: 58,560 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    So which is it?
    HAMISH_MCTAVISH wrote: »
    Indeed.

    A good news day today, when the normally bearish PWC expect prices to rise, and even RICS are calling for price rises in Scotland and London to continue.
    Really2 wrote: »
    I thought PWC were calling "Real Term Falls" in other words stagnation.

    That is not going to help many own unless they get wage inflation.


    Can we get a concensus?

    The BBC's concensus, as per the article title, is falls. But what's the MSE concensus, just so we know and we can all argue on the same level.
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