It doesn't matter what the government does - UK house prices will fall

chucknorris

andybenw wrote: »

It seems i'll have to spell it out.

Bulls want price rises. Bears want price falls.

There will be stagnation.

Stagnation means no movement. ie no rises or falls.

Hence both bulls and bears will be dissappointed.

Thicky.

Bulls may want price rises (on this site I'm classed as a bull although I doubt that I actually am in reality) but I suspect very few actually expect price rises in the short term.

In terms of rises I think we are probably quite some years away from that in real terms. As for crashing I agree with you, we've had the crash (depending of course on your definition of crash) what I see ahead for the next 3-4 years is stagnation where some years we have small rises and falls and it depends on what happens to inflation whether we have stagnation just nominally or in real terms. Personally I do think inflation will come down, starting next year when the effect of the vat comes of inflation in January, but it will probably be a long stubborn path to get it down to around 2.5%.

I have no intention of buying more property, my next activity in the market will be to sell up, probably in about 10-12 years depending on the market. The exception to that may be if I found a plot of land to build my own house. For anyone that intends to buy at some point my advice would be if you can wait, then wait but keep watching the market closely as a particularly good bargain in the next couple of years might be hard to beat.

Flight2quality

The only problem with the housing market – houses cost too much

This is the fundamental problem that no one wants to admit to. Houses cost too much, and the price needs to come down. And until that happens, the UK economy is going to be walking on eggshells.
It's easy to see why the Bank of England slashed interest rates in March 2009. It's also easy to understand why it's reluctant to raise them again. Preventing house prices from collapsing probably did more to prop up bank balance sheets than any other action in the crisis.
But it means we're now sitting on a time bomb. How many people could maintain their repayments if interest rates went up? And how long will that remain the case? Yes, the Bank of England rate will probably remain low for the foreseeable future. But if there's a full-blown banking crisis in the eurozone, mortgage finance for home loans will get even tighter.

http://www.moneyweek.com/investments/property/uk/first-time-buyer-scheme-uk-house-prices-14700

Sibley

Another false dawn from the HPC gang. What crash are you talking about?
Prices are not dropping. Sorry to break the news.

illgetthere

If you're not selling, its irrelevant....

joguest

illgetthere wrote: »

If you're not selling, its irrelevant....

Quite. The people that don't sell have no influence on the market - it's the forced sellers that determine prices. The number of forced sellers is likely to increase with higher taxes, less employment, higher interest rates, etc.

Jimmy_31

Sibley wrote: »

Another false dawn from the HPC gang. What crash are you talking about?
Prices are not dropping. Sorry to break the news.

I mostly talk about the crash in my neck of the woods.

The crash is alive and kicking around here.

Im guessing but i reckon that its not just my area where prices are still falling.

pbouk

latest land registry figures show that prices have fallen 30+% in my area! i am happy to wait and watch them fall even further. :beer:

Get-real-buy-real

pbouk wrote: »

latest land registry figures show that prices have fallen 30+% in my area! i am happy to wait and watch them fall even further. :beer:

No rush back in at the bottom history shows prices stagnate at the bottom for a while. And we will not see the very bottom until interest rates are back to normal levels.

Aberdeenangarse

Sibley wrote: »

Another false dawn from the HPC gang. What crash are you talking about?
Prices are not dropping. Sorry to break the news.

Perhaps you'd like to tell us what's happening in Maidstone

Get-real-buy-real

Mallotum_X wrote: »

Agree with more of the same. Yes property may well fall but we are looking at couple of percent on average annually at most (regional variations of course).

Any crash now will be due to something happening outside of the UK. The Euro crisis is most likely if something were to cause a crash, but even that I would imagine will limp though the problems.

More like a stealth crash that most uneducated don't even notice.

If 2007 was the top and by 2017 prices are about the same then many on here will be saying see my house has retained its value all these years:rotfl:

When the educated know that house prices have in fact crashed.