MSE News: Halifax: House prices fell during August

edited 30 November -1 at 1:00AM in House Buying, Renting & Selling
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This is the discussion thread for the following MSE News Story:

"House prices dropped 1.2% last month, with further falls predicted ..."
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  • brit1234brit1234 Forumite
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    Good, asking prices are overvalued. We have a whole generation priced out, a housing bubble and now a return to sensible lending.

    Prices will continue to fall till they come affordable again.

    article-1104075-02EB99B1000005DC-923_468x351.jpg
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  • brit1234 wrote: »
    Good, asking prices are overvalued. We have a whole generation priced out, a housing bubble and now a return to sensible lending.

    Prices will continue to fall till they come affordable again.

    article-1104075-02EB99B1000005DC-923_468x351.jpg

    Houses are more affordable now than 4, 5, 6 years ago. The biggest problem isn't house PRICES - it's the ridiculous deposits that the banks insist you have and the interest rates that don't reflect the BOE rate. I really feel for FTBs - they don't stand a chance unless they have wealthy, generous relatives.
  • brit1234brit1234 Forumite
    5.4K Posts
    Boo hiss!!

    Why? This is good news for priced out first time buyers. Have you a vested interest in rising property prices, buy to let investor perhaps?

    Houses are more affordable now than 4, 5, 6 years ago. The biggest problem isn't house PRICES - it's the ridiculous deposits that the banks insist you have and the interest rates that don't reflect the BOE rate. I really feel for FTBs - they don't stand a chance unless they have wealthy, generous relatives.

    As a first time buyer the problem isn't deposits but too high asking prices caused by a decade of irresponsible lending.

    I think if we want to really help first time buyers we should keep mortgage lending as it is and remove the tax relief on buy to let investors as they target first time buyer properties and this gives them a unfair advantage over the FTB.

    Basing affordability on emergency interest rates of 0.5% is ludicrous. House prices are too high and unsustainable that is why they are falling.

    We will have continuing price falls and this is a good thing.
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  • brit1234 wrote: »
    Why? This is good news for priced out first time buyers. Have you a vested interest in rising property prices, buy to let investor perhaps?

    Nope. But I have a property to sell that is already worth less than what I paid for it 6 years ago, and on the flipside nothing I seem to like the look of appears to be falling in price.
  • This doesn't seem to be the case in London. If anything London is fast approaching and even exceeding pre-crunch levels again!
  • brit1234brit1234 Forumite
    5.4K Posts
    Nope. But I have a property to sell that is already worth less than what I paid for it 6 years ago, and on the flipside nothing I seem to like the look of appears to be falling in price.

    If you can over pay on the mortgage to keep equity up. September is a so called peak selling month for estate agents after that asking prices will fall even on the houses you are looking at.

    Remember the more your home falls in value the more the homes you are looking at will and the runs between the ladder are smaller/cheaper.

    Good luck
    :exclamatiScams - Shared Equity, Shared Ownership, Newbuy, Firstbuy and Help to Buy.

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  • brit1234 wrote: »
    As a first time buyer the problem isn't deposits but too high asking prices caused by a decade of irresponsible lending.

    A two bed terrace valued at £200,000 would be immediately accessible to a couple earning £25,000 each if they were allowed to borrow 100% of the value.

    If the value of the terrace fell to £150,000, but lenders demanded a deposit of £30,000, the property would become inaccessible until they've saved up for a few years or more.

    The deposit is the problem. Prices are pretty reasonable in light of two-full time incomes becoming the norm and interest rates trending downwards.
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  • frankleefranklee Forumite
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    Houses are more affordable now than 4, 5, 6 years ago. The biggest problem isn't house PRICES - it's the ridiculous deposits that the banks insist you have and the interest rates that don't reflect the BOE rate.

    Forget the BoE base rate, long term I don't understand why anyone expects to get a loan at interest rates below inflation. Put it another way I wouldn't want to be lending cash and getting less than it's worth back ...
    I really feel for FTBs - they don't stand a chance unless they have wealthy, generous relatives.

    IMO The thing that will help FTB is lower prices and sensible lending will help achieve that. Schemes that help keep the bubble inflated, like no deposits, prolong the agony and draw evermore FTB in who would otherwise have been able to buy at sensible prices.
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