A big house price correction appears to have started.

MrRee_2

True, it is a lack of deposit money .... and that's all.

Give help with deposits and the North will start catching up with the South in house sales.

Jimmy_31

MrRee wrote: »

True, it is a lack of deposit money .... and that's all.

Give help with deposits and the North will start catching up with the South in house sales.

Giz a job:)

buglawton

Rents rose sharply in London in 2011, while property prices either rose or were firm over all the home counties.

Meanwhile in the Midlands/North etc, not so rosy.

It is probably possible to produce a formula where the unemployment level (in increase in it) is a direct factor on prices going up or down.

In any case, most transactions nowadays are just property owners moving up/down/sideways. For FTBs, move along now, nothing to see here.

geneer

IveSeenTheLight wrote: »

Demand being desire and ability.

I wonder if desire is steadily increasing and only being limited by the ability to get a mortgage.

Fascinating.
Lots of people desire a ferrari too Light.
But your insight is truly appreciated.

nollag2006

IveSeenTheLight wrote: »

Demand being desire and ability.

I wonder if desire is steadily increasing and only being limited by the ability to get a mortgage.

You have put your finger on the problem ISTL - there is plenty of demand, esp round my way, but many are forced to rent by tight mortgage lending criteria.

Once this loosens, and it will, then we will really see a huge boom

claire16c

paulmapp8306 wrote: »

Depends how much of a mortgage.

I earn £40k - and the most I can get a mortgage for is £138k. That means assuming a 15% deposit (which is still hard to save for) is a max property price i can look at is ££158k

£40k wage is a fair bit above national average - so its safe to say that as the average person cant afford current prices, with present mortgage restrictions even if they CAN get that mortgage.

.

If thats true thats really depressing. My DH earns around that much and we hope to have a deposit of around £35k in 3 years.

But if by then I am not working because of looking after a child, that would mean by your sums we would able to be buy a house of £173k? That would get us a 1 bed flat. Which would not be big enough and therefore pointless to buy.

We need to be able to get a mortgage of around £240k to make buying a house worth it. If we cant we'll have to stay in rented.

Do they really still do mortgages on salary multiples though, I thought they looked more at what you could afford to pay each month?

ukcarper

Paul’s figures might be a bit low but I don’t think you would get a £240k mortgage on £40k a year. That would cost you £1420 a month at 5% leaving you about £1000 for everything else.

claire16c

ukcarper wrote: »

Paul’s figures might be a bit low but I don’t think you would get a £240k mortgage on £40k a year. That would cost you £1420 a month at 5% leaving you about £1000 for everything else.

Sorry - just realised I should have written mortgage of £215k with deposit of £35k - possibly more. House would cost approx £240k.

hmm- just had a look on the halifax website, it says on 40k with 1 dependant, you can borrow up to £192k. So not too far off if we can find the extra deposit, which may be possible. Or if I am working. So I guess its not impossible. Wed be paying a lot more than what we pay to rent though.

IveSeenTheLight

geneer wrote: »

Fascinating.
Lots of people desire a ferrari too Light.
But your insight is truly appreciated.

While some may desire a Ferrari it's not a necessity.

A roof over your families head either to buy or rent is pretty much a fundamental.

I'm happy to enlighten you geneer, but your car comparison is not a good similie

Get-real-buy-real

IveSeenTheLight wrote: »

While some may desire a Ferrari it's not a necessity.

A roof over your families head either to buy or rent is pretty much a fundamental.

I'm happy to enlighten you geneer, but your car comparison is not a good similie

What if the government wanted to keep the price if Ferrari's propped up? They could pay people's interest on the loan for extended periods even when they can't afford it. Then they could pay people to rent them even if they can not afford the rent themselves and this could be huge amounts thousands per week for some families which would push the costs of renting/buying Ferrari's up way beyond what they should be.

Hang on a min................