What will be the house price average in 2016?

Sibley

What do you think it will be?

Sibley

I'm going for over £185,000 figure.

Banks will relax lending and this news about the Chinese sanpping up London property will set the market on fire.
Interest rates won't rise over 3% in the next five years so that will help us as well.

It feels like a wonderful time to own a house.

angrypirate

With HPI rampant its got to be at least £500,000 - i mean anyone who denies this is just dillusional.

Graham_Devon

Too difficult to call for me. Think theres far too many unknowns out there. The BOE having to release explanations, loosing credibility. Greece going down the pan. US up the creek. EU putting rates up. Austerity plan apparently now starting to kick in (though I fully expect all austerity to be reversed if it gets tough). Inflation. Increasing homelessness. Increasing rental arrears. Increasing mortgage arrears.

Theres just too much !!!!!! to call anything five years from now, IMO. Its just stabbing in the dark!

Alter_ego

angrypirate wrote: »

dillusional.

Fantastic new word!
What is the average price now please?

Graham_Devon

FrankCastle wrote: »

Well all these things point towards lower prices. If you said you are not sure if these things will happen and things are getting better then there are less unknowns. But all these things and more are happening its the perfect economic storm and its getting closer. So the only thing certain is that prices can not go up much more in the next 5 years.

Yer, trouble is, a lot of us thought that when banks went down. But everything was pulled out of the hat to stop prices from falling.

FTBFun

Graham_Devon wrote: »

Yer, trouble is, a lot of us thought that when banks went down. But everything was pulled out of the hat to stop prices from falling.

Or to give the actual reason, to stop the economy collapsing.

chucky

FTBFun wrote: »

Or to give the actual reason, to stop the economy collapsing.

base rates went to 0.5% just to stop house prices falling... that's why they also dropped in other countries that have very low home ownership numbers.

well that's what the armchair economists on here tell me all the time... of course they must be right...

Graham_Devon

FTBFun wrote: »

Or to give the actual reason, to stop the economy collapsing.

There was housing stimulus at the time too. Increase in the rate of SMI interest. Reduction to 13 weeks (from 39) for those wishing to start a claim for SMI. Extension to SMI payments. Extension to those who can claim. Instructions from government to halt reposessions. Extention to the amount of arrears allowed to build. Lend a hand lending from the government.

It's not just interest rates which played a part in the total policy.

FTBFun

Graham_Devon wrote: »

There was housing stimulus at the time too. Increase in the rate of SMI interest. Reduction to 13 weeks (from 39) for those wishing to start a claim for SMI. Extension to SMI payments. Extension to those who can claim. Instructions from government to halt reposessions. Extention to the amount of arrears allowed to build. Lend a hand lending from the government.

It's not just interest rates which played a part in the total policy.

Yes but were these other actions purely to keep house prices stable though? As it seems to me that most of the measures you refer to above - SMI changes , halt to repossessions - were to keep people in their homes during a recession, as having a substantial amount of people needing to be housed during a time of economic turmoil isn't the best situation to be in.

IveSeenTheLight

FrankCastle wrote: »

Well all these things point towards lower prices. If you said you are not sure if these things will happen and things are getting better then there are less unknowns. But all these things and more are happening its the perfect economic storm and its getting closer. So the only thing certain is that prices can not go up much more in the next 5 years.

Of course if you only look at one side of the formula, you may not get the right calculation.