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

sabretoothtigger

Values will fall but prices are subject to the supply of money, as that goes up so will prices. So government can raise prices if they want

Get-real-buy-real

yertiz wrote: »

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'.

There are only a few bulls left, and they are deluded. Most people agree houses will fall in value for a few more years yet.

The main disagreement is how much, some think only fall a little more and some like myself have always said it will be around a 50% real term crash from top to bottom.

Flight2quality

sabretoothtigger wrote: »

Values will fall but prices are subject to the supply of money, as that goes up so will prices. So government can raise prices if they want

Exactly right if they keep adding 75 odd billion units of currency to the supply here and there, of course the amount of units needed to buy anything goes up because there are more units chasing the same amount of good and services.

So governments can raise prices by abusing their currency supplies, but values are falling while prices are rising.

As I have always said we are looking at around a 50% real term house value crash from top to bottom. We are around half way through the crash, and picking up speed.

IveSeenTheLight

yertiz wrote: »

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.

You appear to have the bull / bear terminolgy the wrong way round.

yertiz wrote: »

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'.

I wonder why student's need to leave with such high debts.
I know that fee's seem to be increasing but I know people who have been able to leave with next to nothing / low debts.

My brother took a year out last year and is in his final year now.
He doesn't have any debt.

My wife left Uni with about a £5k debt which we paid off in a couple of years.

If you think about it, were slowly heading towards a fund based education that university fees need to be planned in from birth.

That's something I certainly am doing such that there should be no excuse that my children will be in debt should they choose to go to University.

Conrad

In my patch November is the busiest I can recall - seriously, and this is one of the so called less affordable places. First time buyers are out in force.

Not saying this is typical, just reporting from my spot of coal face is all.
I had 2 FTB couples in today and on giving them 90% quotes, both said they were paying similar in rent.

SecondLegDownIsTheBigOne

The article hits the nail on the head. What an unconservative policy. We're all socialists now, even those of you that believe that you aren't.

Oh well. This policy will fail. The next leg down is here