Land Registry up 0.4%

Really2

As above

Wonder if Dirk will keep bumping this one.

http://www1.landregistry.gov.uk/assets/library/documents/HPIJul10snuye.pdf

Chris2685

I just can't work out how prices can go up when there are so many fewer people buying now... I guess low interest rates plays the biggest part?

Strings

Chris2685 wrote: »

I just can't work out how prices can go up when there are so many fewer people buying now... I guess low interest rates plays the biggest part?

People will pay for what they precieve as value, while you or I might not see it, thousands do.

It also depends on the quality of what is being sold, the excess housing stock might be of low quality

Chris2685

Yes, but where the heck are people getting the money from to do so?

1984ReturnsForReal_2

Chris2685 wrote: »

Yes, but where the heck are people getting the money from to do so?

Did you hear the news yesterday?

Rich people still have money & will continue to do so.

Strings

Chris2685 wrote: »

Yes, but where the heck are people getting the money from to do so?

From saving their money while they continue to work maybe?
The transaction numbers suggest that the number of people that can do this has dropped, but life goes on for the rest.

On a personal level the recession has not effected me at all, if anything has made my life better and I am sure this applies to a whole host of people.

westv

Remember that these figures are perhaps 2 or 3 months old depending on how long the transaction takes to complete. Whether that makes any difference I have no idea.

ess0two

Chris2685 wrote: »

Yes, but where the heck are people getting the money from to do so?

Saving getting a mortgage?worth bearing in mind plenty of properties in certain areas of the UK are affordable.

IveSeenTheLight

Really2 wrote: »

As above

Wonder if Dirk will keep bumping this one.

http://www1.landregistry.gov.uk/assets/library/documents/HPIJul10snuye.pdf

Doubt he will.
Interesting the Land Registry (covers a larger percentage of the market than Nationwide or Halifax) showed an increase.

Chris2685

Fair enough, but I thought banks had totally restricted lending now. 20% deposits required on a flat, 15% on a house, etc.
Average household income = ~£30,000 (http://www.statistics.gov.uk/cci/nugget.asp?id=334)
Average house price = £166,798 (http://www1.landregistry.gov.uk/houseprices/)

This means that on average people need a deposit of ~£25,000 to put down a 15% deposit.

That doesn't include other costs, so realistically a household would need at least £30,000 in savings to be able to even consider buying an average house.


I know these figures are for average houses, and most FTB's would buy a below average house, but even then you are still going to be talk around £20,000-£25,000 in cash required before considering buying.


Then there is the average household income, which does not support the average house price in any way. I thought banks were going back to somewhere near 3.5x income to calculate what mortgage they will lend, in that case the average household should only be able to get a mortgage of 105000.


I know these are all very simplified figures and calculations, but it should surely be somewhere a little nearer to that, or am I just being TOO simple? I realise there are extremes in all cases, but an average is what it is. An average.

IveSeenTheLight

westv wrote: »

Remember that these figures are perhaps 2 or 3 months old depending on how long the transaction takes to complete. Whether that makes any difference I have no idea.

This is the release for July so only 1 month out