Shock Rise in House Prices.........

Wookster

shortchanged wrote: »

As I've said for ages now it's like a Mexican standoff at the moment and until one thing or another changes then very little will change.

The ultra low interest rates are preventing a glut of many forced buyers so many buyers can sit and wait.

Another point here is that banks are extremely slow to repossess folks in arrears, partly due to political pressure, constrained credit (banks might have to sit on repossessed for several months) and the largely dysfunctional house market at the moment.

This is yet another artificial prop in the house market.

Heyman_2

Wookster wrote: »

Another point here is that banks are extremely slow to repossess folks in arrears, partly due to political pressure, constrained credit (banks might have to sit on repossessed for several months) and the largely dysfunctional house market at the moment.

This is yet another artificial prop in the house market.

Yes it's not in the banks interests to repossess en masse in these times of bank bailouts and decimated balance sheets.

Not sure I'd call it an artificial prop though, it is what it is for the times we're living in. If it was all down to political pressure then I might agree with you but it isn't, as you've acknowledged.

Dan:_4

Wookster wrote: »

Another point here is that banks are extremely slow to repossess folks in arrears, partly due to political pressure, constrained credit (banks might have to sit on repossessed for several months) and the largely dysfunctional house market at the moment.

This is yet another artificial prop in the house market.

I think you over-estimate how many people are on the brink of repossession - not enough to make any difference to house market.

missile

It is not a shock to me, in fact I am not even surprised.

Prices have been rising steadily in some parts of the country they now exceed 2007 valuations.

Wookster

Heyman wrote: »

Yes it's not in the banks interests to repossess en masse in these times of bank bailouts and decimated balance sheets.

Not sure I'd call it an artificial prop though, it is what it is for the times we're living in. If it was all down to political pressure then I might agree with you but it isn't, as you've acknowledged.

As I said, banks reluctance to repossess is down to a number of reasons but the fact that banks aren't repossessing does mean that you don't have a functioning house market because those who can't afford the houses they live in are in effect being subsidised by others and effectively maintaining prices at a level that is unaffordable.

Dan:_4

Wookster wrote: »

As I said, banks reluctance to repossess is down to a number of reasons but the fact that banks aren't repossessing does mean that you don't have a functioning house market because those who can't afford the houses they live in are in effect being subsidised by others and effectively maintaining prices at a level that is unaffordable.

Maybe for you, but not for others wookie.

treliac

HAMISH_MCTAVISH wrote: »

.

But because there is such a shortage of housing, rents have soared to new record highs instead.

Not quite the panacea though http://www.moneysavingexpert.com/news/mortgages/2011/12/rising-number-in-rent-arrears?utm_source=forum&utm_medium=sidebar&utm_campaign=box


Friend of mine has been renting out a property but plans to pack it in due to the unpredictability of tenants ability to pay and the state it's left in / cost and effort of getting it fit for re-letting each time it's vacated.

HAMISH_MCTAVISH

treliac wrote: »

Not quite the panacea though

From your link....

""The overall tenant population has coped relatively well with rising rents and soaring living costs - with total arrears actually down year on year in November."

There will always be people at the margins that will struggle.

But that doesn't change the fact that with housing in short supply, population rising, house building at record low levels, and mortgage rationing preventing people from buying, then rents will continue rising.

Graham_Devon

And total in serious arrears up.

Which means the problems are becoming more problematic.

Hamish, you have every shred of evidence in front of you that rising prices means people and the systems cannot cope. Whether that be mortgages currently, banks currently, rentals currently, arrears currently. Where is the evidence that your rose tinted view that higher prices = success?

HAMISH_MCTAVISH

Graham_Devon wrote: »

And total in serious arrears up.

Which means the problems are becoming more problematic.

Actually that is nothing other than a reflection of the worsening wider economic picture and rising unemployment.

Hamish, you have every shred of evidence in front of you that rising prices means people and the systems cannot cope. Whether that be mortgages currently, banks currently, rentals currently, arrears currently. Where is the evidence that your rose tinted view that higher prices = success?

Could you try again, preferably with a statement that makes sense?