House prices could fall by 25% amid new lending rules

headcone

Andy347 wrote: »

Good.

Hopefully they will crash 80-90% down from their current ridiculously high prices!

I doubt you would pass my suitability to rent criteria,so I suggest you would be much better off buying.

You know you want to.

RDB

HAMISH_MCTAVISH wrote: »

And an affordable roof over your head is available now. Rents are at historical lows.

Where did you get that from?

If thats right then rents were at even more historical lows throughout my lifetime because they are the most expensive I can ever remember them right now.

Also if your right then they will be at even more historical lows in the coming years as housing benefit keeps on cutting back and average rents fall in line.

Admit it Hamish its just not true that rents are at historical lows right now.

Graham_Devon

HAMISH_MCTAVISH wrote: »

Rents are at historical lows.

Is it historial lows they are at now?

I thought it was hisorical highs and all so damn good in the rental market from the threads you have posted up. You know, those ones where you always mention the bears shooting themselves in the foot and mention supply and demand over and over.

Which is it? As surely, as you have told us time and time again, low supply pushes prices up. You have told us there is low supply, but are now telling us it's also historical lows?

StevieJ

poppingjay wrote: »

Ferrari's aren't essential to life, unlike shelter.

In a civilised society an affordable roof over your head isn't too much to ask, personally I think amassing rafts of properties is a bit 'weird' unless you are a housing association. I imagine that comment will offend some, but hey if the cap fits....

Homes in my humble opinion aren't fair game for speculation.

OK let us look at it in a different way. What if someone bought some land, built some houses and then rented them out to people who couldn't afford to buy, would that be OK?

Malcolm.

StevieJ wrote: »

OK let us look at it in a different way. What if someone bought some land, built some houses and then rented them out to people who couldn't afford to buy, would that be OK?

Of course, there's always a need for more rabbit hutches.

System

StevieJ wrote: »

I think Really will be along to have a word with you soon

Hah, I read his comment and facepalmed in real life.

Personally I don't think we'll ever see real prices like 2007 again.

Sapphire

RDB wrote: »

Of course house prices will reach the real level of 2007 again one day. Houses have always gone from overvalued to undervalued and back again.

https://wealthcycles.com/video/catching-wave

I don't think so. House prices were artificially ramped up in the last decade, through over-borrowing, more so than they have ever been before. The UK economy became dependent to a large extent on rises in the property 'market'. Meanwhile UK manufacturing was run down so that we are not in a position to compete against the rising economies of the 'Third World', where labour is a fraction of the cost of that in the wealthy countries in the West. The labour 'government' was quite happy to allow property to rise out of all proportion to earnings via various dubious means, because it kept people quiet.

We are entering a completely different economic climate now. There's the fact that globalization has resulted in many UK jobs being outsourced abroad, and that's unlikely to change, given that those in charge of companies – particularly large companies – are only out for themselves and couldn't give a hoot about the nation's prosperity. Then there's peak oil, which is coming up in the next couple of decades. All this is going to mean that the majority of people in the UK will be far worse off than they have been in the last decade or so – that fact just hasn't hit home yet.

Housebear51

Sapphire wrote: »

I don't think so. House prices were artificially ramped up in the last decade, through over-borrowing, more so than they have ever been before. The UK economy became dependent to a large extent on rises in the property 'market'. Meanwhile UK manufacturing was run down so that we are not in a position to compete against the rising economies of the 'Third World', where labour is a fraction of the cost of that in the wealthy countries in the West. The labour 'government' was quite happy to allow property to rise out of all proportion to earnings via various dubious means, because it kept people quiet.

We are entering a completely different economic climate now. There's the fact that globalization has resulted in many UK jobs being outsourced abroad, and that's unlikely to change, given that those in charge of companies – particularly large companies – are only out for themselves and couldn't give a hoot about the nation's prosperity. Then there's peak oil, which is coming up in the next couple of decades. All this is going to mean that the majority of people in the UK will be far worse off than they have been in the last decade or so – that fact just hasn't hit home yet.

So are you saying that many will move out of the UK? Or just that everyone will be less well off?

Some argue that even if the majority are poor house prices can still rise. These ones say that it could get like it used to be where the super rich are the only ones who can afford to buy and the rest of us have to rent.

It will be like the lord of the manor and 90% of the population will be renting off them.



My personal opinion is that prices will fall inline with wages this seems far more likely.

StevieJ

Housebear51 wrote: »

So are you saying that many will move out of the UK? Or just that everyone will be less well off?

Some argue that even if the majority are poor house prices can still rise. These ones say that it could get like it used to be where the super rich are the only ones who can afford to buy and the rest of us have to rent.

It will be like the lord of the manor and 90% of the population will be renting off them.



My personal opinion is that prices will fall inline with wages this seems far more likely.

I can't fault that logic (if wages do fall) but markets like London may be a little more sticky with more outside and exchange rate influences.

Sapphire

Housebear51 wrote: »

So are you saying that many will move out of the UK? Or just that everyone will be less well off?

No – I think that everyone in the UK but the very wealthy, who have the dosh to protect themselves, will be very much less well off.

I don't think many people will move away from the UK, because similar problems are likely to occur elsewhere. And in the West, which has been living to a great extent off borrowed, rather than real, money, which gave an illusion of wealth during the last decade or so, being much less well off will be very hard to adapt to for most people. In areas of the world where the standard of living is very low for many, people will not be as deeply affected by a lack of material possessions.