Take cover! The housing market is heading for a bloody and protracted crash!

Thrugelmir

shortchanged wrote: »

I agree that income multiples are one of the best ways of curtailing house prices, however there seems to be more argument for affordability calculators. I feel however these are just another way which will end up being manipulated by creative lenders and borrowers, more so borrowers and increase the risk of rampant HPI again.

Creative lenders? Care to name one........

Era is over.

shortchanged_2

Thrugelmir wrote: »

Creative lenders? Care to name one........

Era is over.

Lets hope so.:)

However as you well know Thrugelmir, the human by nature is a greedy beast.

Emy1501

ukcarper wrote: »

I agree prices are high and for some people property is unaffordable but that doesn’t alter the fact that some people who could afford repayments are prevented from buying because of large deposit required.

Attitudes to lending have changed now and with the state of the world economy and housing market it doesn't make sense for lenders to lend to people in the main without a 10% deposit. There are 95% mortgages for people who are happy to jump through hoops but for the avergae FTB saving up a 10-15% deposit and keeping their credit status clean will allow them to buy in the future.

crash123

shortchanged wrote: »

However as you well know Thrugelmir, the human by nature is a greedy beast.

I agree with you and I can name a few on this site.

Graham_Devon

ukcarper wrote: »

True so you think it's ok that somebody has to rent because they haven’t got the £25k deposit even though they could afford the mortgage repayments. I don’t want to see prices rocket but I get the impression you don’t want lower deposit because you are afraid that if there were available it would increase prices. But if the wage multipliers are keeps at a reasonable level will that happen.

True, I want house prices to be lower.

But larger and larger desposits don't help me, or anyone I know. So i don't want to see larger deposits in a stringent fashion per se.

It wasn't about what I wanted though, it was about what we have. There is no point suggesting the house is affordable if people can't afford it. On paper it may well be. But unless you have the requirements that are written on that paper, it's fruitless.

Thrugelmir

shortchanged wrote: »

Lets hope so.:)

However as you well know Thrugelmir, the human by nature is a greedy beast.

Property prices affect us all in same way. That's where the line has to be drawn.

If someone wishes to pay thousands for a foal. Then let them.

HAMISH_MCTAVISH

Thrugelmir wrote: »

Property prices affect us all in same way. That's where the line has to be drawn.

In your dreams....

I'd wager that in 20 years, you'll look back on the prices of today as being laughably cheap.

This country has set itself up for a truly massive boom next time around, and largely thanks to the lending restrictions you support creating a housing shortage of epic proportions.

Emy1501

HAMISH_MCTAVISH wrote: »

In your dreams....

I'd wager that in 20 years, you'll look back on the prices of today as being laughably cheap.

This country has set itself up for a truly massive boom next time around, and largely thanks to the lending restrictions you support creating a housing shortage of epic proportions.

Your in the minority when it come to lending restrictions. The MMR and ot recommendations from it are widely accepted by the vast majority.

There is little evidence to support the sort of boom you are talking about and in reality as you and other believe we are in a housing shortage already then we would be in the boom that you predicted for 2011 and 2012 which has not happened.

shortchanged_2

HAMISH_MCTAVISH wrote: »

In your dreams....

I'd wager that in 20 years, you'll look back on the prices of today as being laughably cheap.

This country has set itself up for a truly massive boom next time around, and largely thanks to the lending restrictions you support creating a housing shortage of epic proportions.

This comes back to another point I made when you made this statement before that you never answered.

You claim there is a lack of building because builders can't sell the houses they build therefore there is an increasing shortage of housing.

I stated that if that was the case and house prices dropped so people would then start buying more again, would it not result in an increase in builders building more because they would sell more at the lower prices?

You failed to answer this point when I made it before Hamish, so give it a go now.

grimboyd

Bring it on .. BANG!