MSE News: House prices predicted to fall this year

DVardysShadow

Wh05apk wrote: »

No I want the economy to recover, you seem to want us to all suffer like the northern Ireland market, before we can move forward?

Patient has eaten too many cream cakes. Dr Wh05apk prescribes another plateful of cream cakes.

rickbonar

RenovationMan wrote: »

Do you not think that if interest rates go up then rents will also go up. I doubt that too many BTL landlords will soak up rate rises, especially if rises are hitting them hard in the pocket.

With curbs on lending preventing FTBers from buying, this seems to be a bumper time for landlords because potential housebuyers are stuck renting.

If people are struggling financially you tend to find that they bunker-down in their existing homes instead of climbing the housing ladder and so decent housing stock doesnt come onto the market. The trash will drop in price but decent homes will retain their value simply because they are not up for sale.

Possibly. I'm just providing alternative views to further debate.

I’ve got no doubt that some people letting their houses will try and put their rents up to offset the interest rise.

However more and more “to let” signs are already appearing everyday and as peoples wages are limited there will be more places to let than there are people willing to rent especially at high rents.
Mr Cameron and his team of privileged millionaires have already anticipated and realised that, they rightly assume people may pack in their jobs to claim housing benefit. But to foil that they are bringing in limits to housing benefit and won’t expand it to cover what the government consider to be too high a rent. And that figure is already too high in their opinion.

I feel that rather than waste money paying off someone else’s mortgage, families without their own home will live with mum & dad or band together and share just like our esteemed immigrant communities.

As for the trash dropping in price it depends on what is your definition of trash?
Decent homes are really anything currently over £1.5 million to buy so yes agree on that.
For the ordinary working public though who own somewhat more modest but vastly overpriced little dwellings.

I believe the overall effect will be lower rents and a price bounce downward.

We’ll soon find out who is right, Right?

property.advert

Prices being discounted more and more even though people are being more realistic. As for rents, properties coming back to market at lower rents than last year and remaining empty longer (I have data from 18 months for my area in SE UK). Inflation rampant, wage rises non existent, fuel through the roof, utilities prices ramped up again, VAT starting to hit home and confidence on a knife edge.

Just a little bit more bad news, such as perhaps interest rates on the rise and the pack of cards could come crashing down. There truly is very little support at the moment.

Premier_2

Thrugelmir wrote: »

There's a great forum board dedicated to discussing House Prices and wider economic issues. This board is primarily for those seeking mortgage and indirectly money advice.

Did you look at who created this thread and it's title/specific purpose before jumping in with both feet? :huh:

As to why this thread had been located on this particular board, perhaps this will help you understand better:

MSE_Andrea wrote: »

Hi all

To clarify a few points here.. if someone has the username MSE... ie MSE Jenny, MSE Lee, then they can post threads where they like because it's a deliberate decision made in order to help people from the weekly email or an article.

You'll remember Discussion Time and a couple of other boards are invisible to people who aren't logged in. If the team post a thread in there that's going to be linked to from the weekly email then a large number of people won't be able to read it.

http://forums.moneysavingexpert.com/showpost.php?p=38375712&postcount=35

brit1234

There is more and more evidence that prices will continue to fall. The vested interested groups spring bounce has failed to appear and prices continue to fall.

House prices were massively inflated by years of fraud, loose lending and too low interest rates. With the austerity cuts I see no way that the price falls can be stopped. The housing crash is gathering speed and that is a good thing for future generations.