Newsnight: House price crash

Fella

StevieJ wrote: »

That is not all that has happened, you also have increased equity and therefore a larger deposit on the next house, presumably opening the way to a lower interest rate.

Yes but that simply means that someone who bought before a house price boom is better situated than someone who didn't.

However both people would be better off if the house price boom hadn't happened. Neither should rejoice at the increase in prices. We all need to live somewhere & all things being equal it'd be infinitely better for everyone if the average house price was £20,000 instead of £200,000. Either way it's the same house.

The current mega-high house prices are bad news for everyone, those who own, those who don't, and even BTL landlords (serious BTL landlords base their business on yield, not hoped-for capital gain, and would prefer low prices so that they could buy more, higher-yielding, properties).

SecondLegDownIsTheBigOne

"An Englishman's home is his castle." :rotfl::rotfl::rotfl::rotfl:

The laughter is making me cry. :rotfl::rotfl::rotfl::rotfl::rotfl:

ukcarper

Fella wrote: »

Yes but that simply means that someone who bought before a house price boom is better situated than someone who didn't.

However both people would be better off if the house price boom hadn't happened. Neither should rejoice at the increase in prices. We all need to live somewhere & all things being equal it'd be infinitely better for everyone if the average house price was £20,000 instead of £200,000. Either way it's the same house.

The current mega-high house prices are bad news for everyone, those who own, those who don't, and even BTL landlords (serious BTL landlords base their business on yield, not hoped-for capital gain, and would prefer low prices so that they could buy more, higher-yielding, properties).

Don’t you think that is very simplistic if the average house price was £20k how would you allocate the limited amount of property.

Prices are high now but you can’t use the mid 90s to define normal prices.

StevieJ

Fella wrote: »

Yes but that simply means that someone who bought before a house price boom is better situated than someone who didn't.

That will do

MrRee_2

For 10 years the bears have been saying that there must be a crash at some point, "it can't go on" they said.

Yet it did go on, and is still going on right now as we type ...... demand is building, unlike builders, and there is a huge shortage of property ..... a boom is underway and prices are shooting up.

The fact that one geek on a TV Show outwits an Estate Agent is hardly a reason to believe what the geek says.

Come on, I know 25 million junior school kids who own more brain cells than your average Estate Agent!!!

I gave up outwitting Estate Agents when I was allowed to wear long trooosers at school.

Facts are facts ... 40 buyers chasing every property in the South, a tiny 0.5% rise in the mortgage rate isn't about to change that!

kabayiri

Having watched it I am still not sure of the EA woman's position.

Is she saying that significant vested interest in property in our society will dictate further government interventions ?

The premise of the article initially seemed to suggest that commercial organisation policy would increasingly drive rates, and not BOE/government interests.

It wasn't a great studio debate since it advanced nothing.

abaxas

MrRee wrote: »

For 10 years the bears have been saying that there must be a crash at some point, "it can't go on" they said.

Yet it did go on, and is still going on right now as we type ...... demand is building, unlike builders, and there is a huge shortage of property ..... a boom is underway and prices are shooting up.

The fact that one geek on a TV Show outwits an Estate Agent is hardly a reason to believe what the geek says.

Come on, I know 25 million junior school kids who own more brain cells than your average Estate Agent!!!

I gave up outwitting Estate Agents when I was allowed to wear long trooosers at school.

Facts are facts ... 40 buyers chasing every property in the South, a tiny 0.5% rise in the mortgage rate isn't about to change that!

The problem is that there is much more to the UK than the South.

If you believe the statistics (which I am very wary of), on average anyone who bought a house in the last 8 years in the North has lost money already. That is a 20% swing and smells a bit crashy.

CRASH_BANG_WALLOP

MrRee wrote: »

For 10 years the bears have been saying that there must be a crash at some point, "it can't go on" they said.

Yet it did go on, and is still going on right now as we type ...... demand is building, unlike builders, and there is a huge shortage of property ..... a boom is underway and prices are shooting up.

The fact that one geek on a TV Show outwits an Estate Agent is hardly a reason to believe what the geek says.

Come on, I know 25 million junior school kids who own more brain cells than your average Estate Agent!!!

I gave up outwitting Estate Agents when I was allowed to wear long trooosers at school.

Facts are facts ... 40 buyers chasing every property in the South, a tiny 0.5% rise in the mortgage rate isn't about to change that!

ree dude there can be no boom without crazy lending

CRASH_BANG_WALLOP

abaxas wrote: »

The problem is that there is much more to the UK than the South.

If you believe the statistics (which I am very wary of), on average anyone who bought a house in the last 8 years in the North has lost money already. That is a 20% swing and smells a bit crashy.

dude thats ree's problem. he thinks london with its rich foreign investors is THE UK market he does not realise the rest of the UK market is crumbling

Fella

StevieJ wrote: »

That will do

Lol, no actual response then? I accept your capitulation graciously.