London's property boom over?

shortchanged_2

HAMISH_MCTAVISH wrote: »

Even a blind man can see that we obviously did not have a bubble in house prices at all, just a genuine shortage of housing.

Otherwise prices here would have tanked like they did in Ireland and America.

Is this why we have a pretty non functioning housing market in the UK now Hamish which they are seriously trying to invigorate with all sorts of schemes and scams to try to entice buyers into the market?

HAMISH_MCTAVISH

shortchanged wrote: »

Is this why we have a pretty non functioning housing market in the UK now Hamish which they are rigourously trying to invigorate which all sorts of schemes and scams to try to entice buyers into the market?

Shortchanged.

Provide a credible explanation for the differential performance of the UK, ROI and USA prices. Given that all three had similar market interventions.

Or are you unable to....

shortchanged_2

HAMISH_MCTAVISH wrote: »

Shortchanged
Provide a credible explanation for the differential performance of the UK, ROI and USA prices. Given that all three had similar market interventions.

Or are you unable to....

Well we know in America they can just walk away from a property if they can't pay for it. I'd hazard we'd have the same effect here if the rules were the same.

And for Ireland, yes Ireland's property bubble was far bigger than the UK's as a whole. Growth in Irelands property prices were just ridiculous. As the saying goes the bigger the rise the bigger the fall.

HAMISH_MCTAVISH

shortchanged wrote: »

Well we know in America they can just walk away from a property if they can't pay for it.

False.

Only 19 out of 50 states are non-recourse states.

I'd hazard we'd have the same effect here if the rules were the same.

The rules here are slightly tighter than America, but also far looser than Ireland where it's virtually impossible to declare bankruptcy.

Yet both their prices fell more than ours.

Try again.

And for Ireland, yes Ireland's property bubble was far bigger than the UK's as a whole. Growth in Irelands property prices were just ridiculous. As the saying goes the bigger the rise the bigger the fall.

Yet most of the parts of the UK with the "biggest bubble" have fallen even less than the national average. Some are in fact now at new record highs.

And some of the areas with the lowest prices to start with have fallen by the biggest amount.

So it's obviously not the case that the bigger the rise the bigger the fall.

Epic fail. Try again.

CRASH_BANG_WALLOP

HAMISH_MCTAVISH wrote: »

Fungus Fighter, try arguing the point rationally.

Provide a credible explanation for the differential performance of the UK, ROI and USA prices. Given that all three had similar market interventions.

Or tell your sock puppet to shut up already..... Dude.

dude what is all this fungusfighter rubbish. anyway back to the point dude..your bubble went pop when the credit ran dry

HAMISH_MCTAVISH

CRASH_BANG_WALLOP wrote: »

dude what is all this fungusfighter rubbish. anyway back to the point dude..your bubble went pop when the credit ran dry

Fungus Fighter, try arguing the point rationally.

Provide a credible explanation for the differential performance of the UK, ROI and USA prices. Given that all three had similar market interventions.

Or tell your sock puppet to shut up already..... Dude.

shortchanged_2

HAMISH_MCTAVISH wrote: »

Yet most of the parts of the UK with the "biggest bubble" have fallen even less than the national average. Some are in fact now at new record highs.

And some of the areas with the lowest prices to start with have fallen by the biggest amount.

So it's obviously not the case that the bigger the rise the bigger the fall.

Epic fail. Try again.

Look Hamish we know that London and the SE which I guess is where you are referring to has it's own economic climate which this government is at pains to preserve at the expense of the rest of the UK. London is full of wealthy overseas investors.
And it is well know that 'creative' lending continues abound in London because there is no way that house prices would be where they are in London if there was sensible lending in place.
I would wager that 5 times income plus mortgages are still rife in London.

HAMISH_MCTAVISH

shortchanged wrote: »

Look Hamish we know that .

Nice rant and all, but of absolutely no relevance to the current situation.

The UK has a national lending market. The criteria for a bank loan in Preston is the same as the criteria for a bank loan in Kensington.

And of course the recovery is not limited to London. I am about as far from London as you can get, yet prices up here are now higher than they were in the same month in 2007. Same thing applies in many Scottish areas.

So once again, look at the data and provide a credible alternative explanation.


Empty houses as a percentage of total houses:

Ireland: 17% and rising

USA: 13% and rising

UK: 3% and falling rapidly


Current price falls from peak price:

Ireland: 50%

USA: 39%

UK: 11%


All three nations removed two thirds of lending, had record low interest rates, liquidity schemes, bank bailouts, help for homeowners, expansion of central bank asset sheets, etc.

Two of those nations house prices fell off a cliff and kept falling, whereas prices in the UK dipped before recovering rapidly to within 10% or so of peak.

shortchanged_2

I know this one........

The Americans and the Irish finally saw sense and realised that wasting loads of their income (massive mortgage payments) was a stupid thing to do and they could spend their money more wisely in other places in the economy.

Unfortunately the UK now has a very backward view on housing and governments wrongly try everything to sustain house prices which ultimately will be to the detriment of the UK economy and will continue to stifle any future growth.

RenovationMan

Shortchanged; the man who argued that a repayment mortgage was better than an interest only mortgage during financial crisis because a repayment mortgage can be downgraded to an interest only mortgage, whereas an interest only mortgage is already an interest only mortgage and so has no where to go.

It's more rewarding to discuss finances with a gibbon, at least the gibbon could amuse with its capering.