House prices have fallen 20% in 5 years

homelessskilledworker

The average home in Britain is worth nearly £40,000 less than it was five years ago.


Prices peaked at £200,000 in August 2007, but the same home is now worth only £161,000, according to figures published yesterday by the Halifax bank.


The drop of almost 20 per cent has left millions of families in homes worth less than they paid for them – and there are strong


Read more: http://www.dailymail.co.uk/news/article-2184694/House-prices-fallen-20-past-5-years-leaving-millions-homes-worth-paid-them.html#ixzz22qOtJ31s

joe_blotts

leaving millions in homes worth less than they paid for them

The average home in Britain is
worth nearly £40,000 less than it was five years ago.

Prices peaked at £200,000 in
August 2007, but the same home is now worth only £161,000, according to figures
published yesterday by the Halifax bank.



The drop of almost 20 per cent has
left millions of families in homes worth less than they paid for them – and
there are strong fears that prices could fall further.

Read more: http://www.dailymail.co.uk/news/article-2184694/House-prices-fallen-20-past-5-years-leaving-millions-homes-worth-paid-them.html#ixzz22qPCHV9e

Generali

joe_blotts wrote: »

leaving millions in homes worth less than they paid for them




Read more: http://www.dailymail.co.uk/news/article-2184694/House-prices-fallen-20-past-5-years-leaving-millions-homes-worth-paid-them.html#ixzz22qPCHV9e

If you adjust for RPI inflation the fall is well over 30% and rising (IYSWIM).

While there is some way to go before the UK housing market gets a free tie from macaque's august club, membership of the rather less snappily named 70% in real (inflation adjusted) terms remains a possibility.

MobileSaver

joe_blotts wrote: »

leaving millions in homes worth less than they paid for them

In other shock news millions of people are driving cars worth less than they paid for them.

Get out while you can. Sell your houses. Sell your cars.

We're all doomed.

Sigh.

Generali

MobileSaver wrote: »

In other shock news millions of people are driving cars worth less than they paid for them.

Get out while you can. Sell your houses. Sell your cars.

We're all doomed.

Sigh.

The difference is that a car is a depreciating asset, land on the other hand shouldn't depreciate and often appreciates in value.

That's why mortgage rates are cheaper than car loans from banks: one is secured against an asset that might fall in value whereas the other is secured against an asset that almost certainly will!

homelessskilledworker

Generali wrote: »

If you adjust for RPI inflation the fall is well over 30% and rising (IYSWIM).

While there is some way to go before the UK housing market gets a free tie from macaque's august club, membership of the rather less snappily named 70% in real (inflation adjusted) terms remains a possibility.

If anyone purchased property at any cost in order to just get on the ladder between 2005 and today(more so 2005 to 2007) it must be quite an unpleasant time for them now.
I have yet to hear and argument yet where buying property since 2005 in general has been a good investment(homemaking is another story before some kick off)

ukcarper

Just for comparison

Land Registry Max £182,442 now £161,777 a fall of 11.2%

Nationwide Max £183,959 now £164,389 a fall of 10.6%

Percy1983

Good news for the greater good, lets hope the correction continues.

The-Joker

Generali wrote: »

If you adjust for RPI inflation the fall is well over 30% and rising (IYSWIM).

While there is some way to go before the UK housing market gets a free tie from macaque's august club, membership of the rather less snappily named 70% in real (inflation adjusted) terms remains a possibility.

Exactly right.

So if its going to be 70% fall by the time we get to the bottom then we are about half way through the crash.

purch

House prices have fallen by 20% in the past 5 years

Well that was a waste.

Macaque, I want my membership fees refunded :eek:

StevieJ

homelessskilledworker wrote: »

If anyone purchased property at any cost in order to just get on the ladder between 2005 and today(more so 2005 to 2007) it must be quite an unpleasant time for them now.
I have yet to hear and argument yet where buying property since 2005 in general has been a good investment(homemaking is another story before some kick off)

Then again if they had bought in 2005 with a 20 year repayment mortgage they would only have 13 years left, then there is the bonus of low interest rates (I took my last one out in 2005, 2 years at BR+0.25% and the rest at BR+0.95%).