U.K. Home Prices Decline as Outlook Worsens, Hometrack Says

ruggedtoast

MrRee wrote: »

Renting is for mugs and those who dream of, but cannot achieve, a home of their own.

I have rented when very hard-up .... I disliked buying someone else's property for them.

I have owned many house since those dark rental days ... I now sit in a large house with zero payments to be made on mortgage or rental.

Those who continued to rent when I bought 30 years ago are paying £2000+ to live in a property I do - and, will pay that (increased each year) for the rest of their days ...... I am effectively saving £2000 a month! WhooooHooooooo!!!!!

Buying will always be the wise option - and house prices will always be higher over an 10 year period.

It is as certain as the sun rising in the East.

Selfish boomer. Why don't you congratulate yourself a bit more for your expeditious choice of decade to be born in?

Your tax relief for second homes is going and next, tax penalties for unused bedrooms will be coming.

Think again!

Pimperne1

geneer wrote: »

Though as nominal UK average falls are pretty much the same as the 90s crash, then it is really a crash isn't it?

What 90s crash?

geneer

joguest wrote: »

I can't recall stating that it was a "crash". However, it looks more like a "crash" than a "boom".

I beleive the current bull party line is that falls of between 10 and 20% are actually "soft landings" and that anything less than a 70% falls are a win for the bulls.

doire_2

nollag2006 wrote: »

.

Once mortgage availability improves, and we've been waiting on that for a very long time now, then we will see a rapid rise in house prices.

Ahh that old chestnut

shortchanged_2

nollag2006 wrote: »

There is a lot of pent up demand in the marketplace out there, with folks being forced to rent because of the limited amount of stock on the market, but mainly because of mortgage rationing.

Pent up demand. I and others are not so sure. http://www.bbc.co.uk/news/business-15519934

I think there is a blatant LACK of demand due to the uncertain economic times and the still too high house prices.

Be honest and ask yourself, do people really want to take on such a large financial commitment in such uncertain economic times. I know I wouldn't. Particularly when low base rates are hiding the impact of the longer term cost commitments.

ukcarper

shortchanged wrote: »

Pent up demand. I and others are not so sure. http://www.bbc.co.uk/news/business-15519934

I think there is a blatant LACK of demand due to the uncertain economic times and the still too high house prices.

Be honest and ask yourself, do people really want to take on such a large financial commitment in such uncertain economic times. I know I wouldn't. Particularly when low base rates are hiding the impact of the longer term cost commitments.

I think you are kidding yourself if you don’t think there aren’t a large number of people who would buy if they had the deposit or didn’t need one.

shortchanged_2

ukcarper wrote: »

I think you are kidding yourself if you don’t think there aren’t a large number of people who would buy if they had the deposit or didn’t need one.

And I think you are kidding yourself if you think there are masses of people queuing up to buy overpriced property.

ruggedtoast

shortchanged wrote: »

Pent up demand. I and others are not so sure. http://www.bbc.co.uk/news/business-15519934

I think there is a blatant LACK of demand due to the uncertain economic times and the still too high house prices.

Be honest and ask yourself, do people really want to take on such a large financial commitment in such uncertain economic times. I know I wouldn't. Particularly when low base rates are hiding the impact of the longer term cost commitments.

There is a very large amount of demand for "average houses" i.e 3 beds suitable for a family.

But it is currently at a fairly low price point and therefore mismatched with the market supply. In this lower end part of the market there isnt much supply at all of decent 3 beds.

RenovationMan

Pimperne1 wrote: »

I can clear that up for you, you didn't state that it was a crash. Still 10.9% over four years - not really a "crash" is it?

Whether something is a boom, crash or soft-landing all depends on individual circumstances.

Someone buying a 3 bed house in 1995 for £60k and seeing 350% HPI until 2007 would see an increase of £210,000 in their home. A subsequent fall of 20% would see their home reduced by £54000. A net gain of £156,000. I'd assume that this person would view the 'crash' as a 'soft landing'.

Someone buying a 3 bed house in 2007 for £210,000 and seeing a subsequent fall of 20% would see their home reduced by £42000 and would see this as a major crash.

All other definitions fall between these two extremes.

I guess this is why I have no real interest in house prices because I bought my first house in 1995 and feel we have had a soft landing.

ukcarper

shortchanged wrote: »

And I think you are kidding yourself if you think there are masses of people queuing up to buy overpriced property.

Did I say masses I said quite a few do you think demand wouldn’t increase if mortgages became easier to get.