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

ess0two

torontoboy45 wrote: »

excepting distressed sales ( minimal impact with IR's low and likely to stay that way for some time), inheritance sell-offs etc.

is this a 2nd mexican stand off on its way?

Probably it happened middle to late 08,so its likely to happen???mid/late 11??????????

now

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.

This is so true, our housing market is in a mess because people valued the property themselves, we sold a property, asked for a valuation only to be told to put it on the market for what we wanted and we would get it. On selling he was right, we moved into rented property, no intention of buying only to be offered some 6 months later by a FA 130% LTV on 7 x self certification! Sheer madness! So you self cert @ £100.000 borrow 130% OH my god how mad is that? We have now got properties that are so over priced with people who can't afford to sell due to a shortfall in the outstanding mortgage, young people no longer able to purchase a home (even at £70,000 they need £7,000 deposit and a wage to cover the repayments) It all went wrong when most of the greedy lenders allowed the old system of 2 1/2 x your wage etc when handing out the funds. 2 people earning £30,000 in our area would just manage £75,000 and they would need £7.500 deposit and that is if they can find a 1 bedroomed flat for £75.000. So greed and stupidity has landed us all in this mess................... When my parents bought they had to have 1 weeks money every month to pay the mortgage. To get it back to normal we would need to wipe at least 75% of the value of every property in the UK. Not a nice thought but very painful to have to face. People re-mortgaged to buy nice cars, have holidays and put kids through Uni (only to get to the other end and not get a job) I feel we have a long painful road ahead to try and at least get the market moving again.

ukcarper

now wrote: »

This is so true, our housing market is in a mess because people valued the property themselves, we sold a property, asked for a valuation only to be told to put it on the market for what we wanted and we would get it. On selling he was right, we moved into rented property, no intention of buying only to be offered some 6 months later by a FA 130% LTV on 7 x self certification! Sheer madness! So you self cert @ £100.000 borrow 130% OH my god how mad is that? We have now got properties that are so over priced with people who can't afford to sell due to a shortfall in the outstanding mortgage, young people no longer able to purchase a home (even at £70,000 they need £7,000 deposit and a wage to cover the repayments) It all went wrong when most of the greedy lenders allowed the old system of 2 1/2 x your wage etc when handing out the funds. 2 people earning £30,000 in our area would just manage £75,000 and they would need £7.500 deposit and that is if they can find a 1 bedroomed flat for £75.000. So greed and stupidity has landed us all in this mess................... When my parents bought they had to have 1 weeks money every month to pay the mortgage. To get it back to normal we would need to wipe at least 75% of the value of every property in the UK. Not a nice thought but very painful to have to face. People re-mortgaged to buy nice cars, have holidays and put kids through Uni (only to get to the other end and not get a job) I feel we have a long painful road ahead to try and at least get the market moving again.

Why does everybody on here have to exaggerate so much a 3 bed terrace in the part of Surrey where I live can be bought for 200k knock 75% of that and it’s £50k 2 x average salary. The same house was 5.5x average salary when I bough one in 1972.

now

ukcarper wrote: »

Why does everybody on here have to exaggerate so much a 3 bed terrace in the part of Surrey where I live can be bought for 200k knock 75% of that and it’s £50k 2 x average salary. The same house was 5.5x average salary when I bough one in 1972.

It is not exaggerated, as you have just quite rightly said at this moment in time a terraced house in your part of the country is £200k not £50k we need a 75% correction in the market to get to that price which is not the case in 2010. You must have been lucky in 1972 to get 5.5 x the average salary as I remember those deals only appeared in the late 80s early 90s. I was offered 7 x 130% LTV with self certification no deposit, I was not dull enough to even consider it but I do know people who did and have lived to regret it. I hope that prices do come back dowwn by 75% so as my 2 sons can buy a starter home not be offered a 50% share in a 1 bed flat for £90k Try asking the people who are selling the property in your area for 75% less then the £200k they are expecting and see what answer you get, however if you are able to do a deal i am sur loads of people would snap up the property. At £200k how would you suggest they secure the mortgage?

PhylPho

HOUSE_PRICE_CRASH_GHOULS wrote: »

House prics are stabilising at the bottom. Expect modest rises this winter before the next leg up early next year. Clear BUY signal.

Well yes, your post is a clear signal as to how cheap it is to "buy" a new posting ID on mse. At this rate your growing portfolio of IDs will be worth roughly the same value as the comments attached to 'em.

now

Still a long way to go I think we will see a lot of buy to let landlords put property on the market again as people on lowering incomes struggle to pay rent

ukcarper

now wrote: »

It is not exaggerated, as you have just quite rightly said at this moment in time a terraced house in your part of the country is £200k not £50k we need a 75% correction in the market to get to that price which is not the case in 2010. You must have been lucky in 1972 to get 5.5 x the average salary as I remember those deals only appeared in the late 80s early 90s. I was offered 7 x 130% LTV with self certification no deposit, I was not dull enough to even consider it but I do know people who did and have lived to regret it. I hope that prices do come back dowwn by 75% so as my 2 sons can buy a starter home not be offered a 50% share in a 1 bed flat for £90k Try asking the people who are selling the property in your area for 75% less then the £200k they are expecting and see what answer you get, however if you are able to do a deal i am sur loads of people would snap up the property. At £200k how would you suggest they secure the mortgage?

I suppose I should have expected a reply like this from you. Why do you assume I was on the average wage and did not have a deposit saved. I haven’t said what price I think properties should be, but to say in needs a drop of 75% to get them back normal is an exaggeration, that house has never been 2x average salary and it is above the average house price.

chewmylegoff

ukcarper wrote: »

I suppose I should have expected a reply like this from you. Why do you assume I was on the average wage and did not have a deposit saved. I haven’t said what price I think properties should be, but to say in needs a drop of 75% to get them back normal is an exaggeration, that house has never been 2x average salary and it is above the average house price.

besides, if house prices fall by 75% noone will be able to buy one as all of the banks will have gone bust, the financial system will have collapsed, and everyone will have lost all of their savings as a result.

neverdespairgirl

MikeMaloney wrote: »

Sorry I dont know the difference.

Can you enlighten me?

A property which is freehold, or subject to a long lease, can be repossessed if you fail to keep up payments on a mortgage or secured loan. Once repossessed, the bank sells the house, takes the mortgage sum / costs / arrears (etc) and the surplus, if any, is returned to the owner.

Foreclosure means they take the house (with a court order), sell it, and keep all the money. The person who owned it loses all his interest in the property.

The latter is, therefore, extremely rare.

LydiaJ

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.

If 3% inflation was reflected in wage rises (which it isn't) or in decent interest rates for the deposits that potential buyers are saving (which it isn't) then I'd agree with you.

I don't see that houses become any more affordable if HP stay static while savings interest is pathetic, wage inflation is minimal, and prices of consumer goods are rising significantly.