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

paulmapp8306

I cant see it happenign either. Doesnt mean it shouldnt

ukcarper

paulmapp8306 wrote: »

I cant see it happenign either. Doesnt mean it shouldnt

No and they shouldn’t have sold them off without building more and it wasn’t only right to buy I can remember people queuing up outside Kingston council offices to buy council houses at a reduced price.

Sibley

No and they shouldn’t have sold them off without building more and it wasn’t only right to buy I can remember people queuing up outside Kingston council offices to buy council houses at a reduced price.

I've bought 2 right to buys.

Best thing government ever did. Well, for me anyway.

ukcarper

Sibley wrote: »

I've bought 2 right to buys.

Best thing government ever did. Well, for me anyway.

That's about the only true bit mind you it wouldn't have been so bad if they had used money to build more houses.

Get-real-buy-real

StevieJ wrote: »

Strangely this was the viewpoint of the so called (moderate) Bulls who suggested that a soft devaluation of property was the likely and desirable method of correction, not so the Bears who were insisisting on a 50-70% nominal crash (one who shall remain without name, by Christmas ) Good to see that you have seen sense

I actually do think between 50% and 70% real term falls from top to very bottom. Prob nearer to 50% but we will see.

Price means nothing, value is everything. Inflation will continue to go up as fiat currency is abused and devalued. But its not a case of get a huge mortgage to protect against big inflation, house prices are going down in real terms. When interest rates finally do go up many people are going to find monthly payments very hard to manage especially when in neg equity.

Flight2quality

paulmapp8306 wrote: »

Sibley wrote: »

Why? Because you want them to?

QUOTE]

No. firstly so the average wage earner can afford the average house (currently thats not possible), but more importantly for the country.

Lower prices, mean lower rent. Both mean a greater disposable income for joe public - which will mean more money spent in the high streets - and the economy improoving.

Quite how high - and higher house prices help the economy (which it seems the government wants) I have no idea.

Exactly right, and the higher and longer they defy gravity the longer people have less disposable income. Rents and house prices have to come down but will not reach bottom until interest rates are back up to normal levels.

Get-real-buy-real

paulmapp8306 wrote: »

I cant see it happenign either. Doesnt mean it shouldnt

It doesn't matter what anyone thinks should or shouldn't happen. As this thread suggests the UK government can not do anything about this cycle, all they can do is extend the price crash it by trying to prop prices up a little longer.

Jimmy_31

ukcarper wrote: »

I think we all agree that more houses need to be built especially social housing but I can't see it happening in the near future and if ever with social housing.

Cheap rental accommodation was not always available in the past the only choice I had when I got married in the 70s was to save and buy a house or live with one of our parents.

I cant see many new council houses being built in my area.

The general feeling is why buy my council house when i already live in it rent free and dont pay a penny for repairs and upgrades.

Flight2quality

Jimmy_31 wrote: »

I cant see many new council houses being built in my area.

The general feeling is why buy my council house when i already live in it rent free and dont pay a penny for repairs and upgrades.

Good point. But its not council houses they are building, its just new builds being added to the supply.

Its a good point about why buy your place. If you are on interest only mortgage then you just renting from the bank anyway, but the banks laughing because you are responsible for repairs and upkeep not them.

Also with the big deflation looming taking on any mortgage is a dangerous business. All debts are going up against everything else.

yertiz_2

I am new to this site so be patient if I seem a little dim. I have been reading some of the messages and it seems to me that there are two groups operating here. The 'bears' who want house prices to go up and the 'bulls' who want them to go down. I assume that the bears are generally house owners (or vested interest parties eg estate agents etc) who see property owning as a means of earning money without paying interest, and the 'bulls' as either those who are worried that high house prices are messing up the general economy or are renting and hoping for them to go down so they can afford to buy. I realise that this is a big generalisation and would appreciate any comments to enlighten me further. Might I add that I have 2 sons in University who will graduate (hopefully) with Student debt of £25,000 each and another who hopes to go in a couple of years, whose debt will be £42,000. As FTB in a few? years I think they will be doomed to live with their parents forever! I guess then that I am a 'bear'.