House prices fall in every region of UK...Even London succumbs to mortgage drought

Aberdeenangarse

Oh dear it's not looking good, is it?

http://www.dailymail.co.uk/news/article-1315423/Mortgage-drought-House-prices-fall-UK-London.html

carolt

Isn't it?

Looks good to me.

Thank for headline, OP.

1984ReturnsForReal_2

And the average time a property takes to sell in England and Wales has risen to 9.3 weeks.

Read more: http://www.dailymail.co.uk/news/article-1315423/Mortgage-drought-House-prices-fall-UK-London.html#ixzz10iRNlVNz

:rotfl::rotfl:
:rotfl::rotfl::rotfl::rotfl::rotfl::rotfl::rotfl:


Around my area its years not weeks so the rest of the UKs homes must be snapped up overnight to get that average......:rotfl:

phil_b_2

If, hypothetically, prices dropped by this amount every month for 2 years, how much would be saved on the average priced property? About £15k? In the grand scheme of things that's barely any saving on a house purchase. It doesnt seem of much benefit. How much do monthly falls need to get to, to be of real significance?

ess0two

MikeMaloney wrote: »

Thats assuming the rate of decline doesnt pick up speed on the way down.

Its looking likely that the rate of house price decline will pick up next year.

Rents are going to fall as housing benefit goes down.

Then as mortgage costs go up and get more difficult - remember a house is only worth what a buyer is wiling and able to pay for it.

Then vendors withdraw from the market.

tomterm8

phil_b wrote: »

If, hypothetically, prices dropped by this amount every month for 2 years, how much would be saved on the average priced property? About £15k? In the grand scheme of things that's barely any saving on a house purchase. It doesnt seem of much benefit. How much do monthly falls need to get to, to be of real significance?

The above figures are nominal, I believe, so when you take account of inflation at 3% a year, you are starting to look at quite a large difference.

ukcarper

ess0two wrote: »

Then vendors withdraw from the market.

This is what a lot of people miss the uncertainty not only stops FTBs it stops people trading up so less houses on the market.

phil_b_2

MikeMaloney wrote: »

Thats assuming the rate of decline doesnt pick up speed on the way down.

Its looking likely that the rate of house price decline will pick up next year.

Rents are going to fall as housing benefit goes down.

Then as mortgage costs go up and get more difficult - remember a house is only worth what a buyer is wiling and able to pay for it.

Any drops that we might have right now could just as easily slow and stop imo. The last few years has tought us not to assume.

I'd say the only way drops could accelerate is if interest rates shoot up and there are lots of forced sales, but I don't see that happening. Who knows.

phil_b_2

tomterm8 wrote: »

The above figures are nominal, I believe, so when you take account of inflation at 3% a year, you are starting to look at quite a large difference.

I dont tend to get into the nominal Vs real thing. I'm not convinced it has much relevance in the houseing market over such short timeframes.

tawse57

phil_b wrote: »

If, hypothetically, prices dropped by this amount every month for 2 years, how much would be saved on the average priced property? About £15k? In the grand scheme of things that's barely any saving on a house purchase. It doesnt seem of much benefit. How much do monthly falls need to get to, to be of real significance?

How long would it take for someone on the average wage to earn 15K tax-free?

Do you have any idea how much 15K ACTUALLY costs over a 25 year mortgage?

I am convinced that one reason why we have such a massive housing bubble in the UK is due to how naive many Brits are about basic maths when it comes to such above things.

Graham_Devon

Who's estate agent is this?

As a professional estate agent with over 25 years' experience, I can frankly say the outlook for property investors has never been bleaker - massive oversupply of units for sale, credit disappearing faster than any time in 17 years, economic fundamentals getting weaker and weaker, potential first time buyers already too burdened with debt to qualify for mortgage approval, the list of negative factors goes on and on.
Without wishing to be alarmist, it's difficult to see how property won't have plunged at least 20% on average by the end of next year, and by at least another 60% by 2015.
- Johnny, Birmingham, 27/9/2010 7:33