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

Get-real-buy-real

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.

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

andybenw

Get-real-buy-real wrote: »

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.

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

I think most people admit that prices are still high. Also the government have as much as admitted it. It is how to lower house prices where we get different viewpoints. For non owning potential FTB's and STR's the ideal would be to let the prices crash. However unfortunately for them that is not the governments view. Governments view is to slowly deflate in 'real terms'. Hence we will see stagnation and then in a couple of years below inflation rises till it all levels itself out.

The only hope for bears waiting on a crash would be some sort of cataclysmic event in Europe I feel.

Jack_Johnson_the_acorn

Get-real-buy-real wrote: »

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.

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

Why don't you just stick to the one Alias.... It's so obvious.

Get-real-buy-real

andybenw wrote: »

I think most people admit that prices are still high. Also the government have as much as admitted it. It is how to lower house prices where we get different viewpoints. For non owning potential FTB's and STR's the ideal would be to let the prices crash. However unfortunately for them that is not the governments view. Governments view is to slowly deflate in 'real terms'. Hence we will see stagnation and then in a couple of years below inflation rises till it all levels itself out.

The only hope for bears waiting on a crash would be some sort of cataclysmic event in Europe I feel.

The other question is can the government stop them crashing? Have they really got that much control?

MrRee_2

Houses too expensive?

Compared to WHAT?

It's not the House Price which is stopping FTB's from buying - not in the slightest - it is simply the lack of finance to purchase.

The demand to buy is there, and being played out in the South with everything selling extremely fast, just the finance is tight.

But, since 2008, FTB's have had a chance to save - if they saved £1,000 a month (not at all remarkable), then they will now have around £36,000 ...... which, amazingly, is the about amount needed for a 20% deposit on the average house price.

This is why we are seeing movement in the market, the finances are now catching up.

House prices are where they have to be, I would suggest.

abaxas

MrRee wrote: »

Houses too expensive?

Compared to WHAT?

It's not the House Price which is stopping FTB's from buying - not in the slightest - it is simply the lack of finance to purchase.

The demand to buy is there, and being played out in the South with everything selling extremely fast, just the finance is tight.

But, since 2008, FTB's have had a chance to save - if they saved £1,000 a month (not at all remarkable), then they will now have around £36,000 ...... which, amazingly, is the about amount needed for a 20% deposit on the average house price.

This is why we are seeing movement in the market, the finances are now catching up.

House prices are where they have to be, I would suggest.

I bet you also blamed the ethoipain banks too, borrow more, buy food with it.

Ermm wait.

MrRee_2

^^ what? ^^

Cleaver

It's funny watching both teams of the forum argue each side:

"It's high house prices that are the problem and stopping people buy, it's not down to any other factor!"

"Rubbish! House prices are completely affordable, it's mortgage shortgages that means people can't buy."

I know this isn't a popular thing to say, but it's clearly a mixture of both isn't it? In areas where I live oop north you can pretty much buy an average house with 3 times the average couple wage. In areas of the South East you've got no chance. So in some places it's price, in other areas it's mortgage availability and deposit requirements, but in most areas it's just both.

abaxas

MrRee wrote: »

^^ what? ^^

Funny how a house what costs £500,000 doesnt cost much more than £150,000 to build.


Weird that.

Cleaver

abaxas wrote: »

Funny how a house what costs £500,000 doesnt cost much more than £150,000 to build.

Weird that.

It isn't weird at all. All houses cost roughly the same to build in terms of materials and then the location, meaning the supply and demand, sets the price. Hence why a flat made of 10,000 bricks in Manhattan costs £10m and a replica built exactly the same in Sunderland would be £100,000.

abaxas

Cleaver wrote: »

It isn't weird at all. All houses cost roughly the same to build in terms of materials and then the location, meaning the supply and demand, sets the price. Hence why a flat made of 10,000 bricks in Manhattan costs £10m and a replica built exactly the same in Sunderland would be £100,000.

Exactly,

No harm in paying for location, but we can also build lots of cheap houses in a new location.

Seams silly not to provide what people want.