We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
Debate House Prices
In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non MoneySaving matters are no longer permitted. This includes wider debates about general house prices, the economy and politics. As a result, we have taken the decision to keep this board permanently closed, but it remains viewable for users who may find some useful information in it. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
A short history of UK house prices
Comments
-
its only a video, its just a bit of info to add to all the rest, the facts are quite checkable by anyone. Anyone that spends anytime on this forum will get boths sides of the argument in abundance, from the bulls and the bears, If there's anything factaully inaccurate spell it out and refute it. Your broad generalisations mean nothing.Hi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam0
-
So created 1 year before the crash and economic collapse then.
That seems pretty prescient to me.
Apparently not, appears it was created in the eyewall of the storm.'Just think for a moment what a prospect that is. A single market without barriers visible or invisible giving you direct and unhindered access to the purchasing power of over 300 million of the worlds wealthiest and most prosperous people' Margaret Thatcher0 -
Mmmm, is that film four years old? maybe it should be retitled 'I'm still waiting'
One thing you fail to understand is the difference between speculative bubbles in financial instruments like the crude oil 2008 bubble or the nasdaq etc and housing. In financial instruments when they pop they pop quick as they're liquid, people just press a sell button and they're out. Housing is illiquid it takes years to unwind the excesses of the bubble as you can't just press a button and be out. The unwinding of the uk housing bubble back to historical norms will take years.Hi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam0 -
One thing you fail to understand is the difference between speculative bubbles in financial instruments like the crude oil 2008 bubble or the nasdaq etc and housing. In financial instruments when they pop they pop quick as they're liquid, people just press a sell button and they're out. Housing is illiquid it takes years to unwind the excesses of the bubble as you can't just press a button and be out. The unwinding of the uk housing bubble back to historical norms will take years.
As Andy pointed out on one of your many other threads, aren't prices already back on trend? Remember, the trend is your friend 'Just think for a moment what a prospect that is. A single market without barriers visible or invisible giving you direct and unhindered access to the purchasing power of over 300 million of the worlds wealthiest and most prosperous people' Margaret Thatcher0 -
As Andy pointed out on one of your many other threads, aren't prices already back on trend? Remember, the trend is your friend
The historical benchmark for affordable(realistic) house prices is 3.5 times avg earnings.
Avg earnings are approx 26k.. do the maths.Hi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam0 -
The historical benchmark for affordable(realistic) house prices is 3.5 times avg earnings.
The long term average is actually 4 times male mean salary, but this was set during the 3 decades of the highest interest rates in history, when the percentage of after tax income required to service a mortgage was as high as 68% versus just 29% today.Avg earnings are approx 26k.. do the maths.
The current average house price is around 4.5 times male mean average salary. The historical average is 4 times, but this was established during the 3 decades of abnormally high interest rates from the 60's to 90's, when mortgage rates were 3-5 times higher than they are today.
In short, the chances of seeing base rates at 10% to 15% again in our lifetimes are vanishingly small, verging on impossible.
And as long as rates don't return to those levels, then current house prices are both affordable and sustainable.“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”0 -
The historical benchmark for affordable(realistic) house prices is 3.5 times avg earnings.
Avg earnings are approx 26k.. do the maths.
So everyone buys on their own? Do the maths 
'Just think for a moment what a prospect that is. A single market without barriers visible or invisible giving you direct and unhindered access to the purchasing power of over 300 million of the worlds wealthiest and most prosperous people' Margaret Thatcher0 -
Not to mention the average income of actual or potential house buyers is significantly higher than the average income of all people.“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”0 -
Avg house prices are £162k avg earnings are £26k, infact wages are now back at 2005 levels, in real terms,
The whole house price boom was created by speculation fuelled by easy credit, 5/6 times earnings mortgages, 125% percent mortgages, no proof of income, no deposit. teaser rates. Buy now or be forever priced out, buy now and in a year you'll be rich, 2005-7 was madness. speculative madness.
Thats over, now its 20% deposit, perfect credit score, proof of income, a credit drought, a massive debt hangover and the speculative mania is gone. Everywhere you look are warnings signs of the coming collapse of that bubble. Unemployment, consumer confidence, gdp figures, debt levels, insolvencies, credit contraction, inflation, interest rates to rise, government cuts, Everything. Like evey speculative, credit driven bubble that preceeded it this one will crash too. It's already started, and its just getting warmed upHi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam0 -
So everyone buys on their own? Do the maths
97% of the 200,000 jobs creates last year we're part time, min wage and unemployment is rising.Hi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 352.4K Banking & Borrowing
- 253.7K Reduce Debt & Boost Income
- 454.4K Spending & Discounts
- 245.4K Work, Benefits & Business
- 601.2K Mortgages, Homes & Bills
- 177.6K Life & Family
- 259.3K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 37.7K Read-Only Boards