No going back

moneyinmypocket

House prices are where they are and there is no going backwards - in order for a recovery to take place in the wider economy we need house prices to rise. It's impossible to recover without houses going up in price

MacMickster

Exactly the wrong way round I'm afraid.

The high cost of housing in the UK acts a bit like a ball and chain on the economy. Businesses either have to pay staff inflated wages to enable them to afford housing, making those businesses less competetive in the global market, or accept that people will have little remaining money for discretionary spending after paying for housing - thus damaging the domestic market.

homelessskilledworker

moneyinmypocket wrote: »

House prices are where they are and there is no going backwards - in order for a recovery to take place in the wider economy we need house prices to rise. It's impossible to recover without houses going up in price

Right i'm in!!

And so is my wife.


It just takes a well written passionate articulate well thought out call to arms such as this to push me into action,

ARE YOU WITH ME MEN!!!!

wotsthat

Given the current economic circumstances I can't see much of an issue with the situation we're in to be honest.

Slowly falling house prices in real terms, more stable nominally, lowish mortgage rates. The only people disappointed are those hoping for a boom and those hoping for a crash.

Current owners aren't seeing their LTV positions worsen too much and potential buyers can save with worrying too much that prices are going to run away in the short term.

Longer term there's going to be a problem - supply isn't keeping up with demand. Mix in an improving economy and increasing credit and the pressure for prices is up. Whether this happens anytime soon is another question.

Dribley

moneyinmypocket wrote: »

House prices are where they are and there is no going backwards - in order for a recovery to take place in the wider economy we need house prices to rise. It's impossible to recover without houses going up in price

Only falling prices and negative equity where I am. A lot worse to come I'm afraid.:mad:

bryanb

Dribley wrote: »

Only falling prices and negative equity where I am. A lot worse to come I'm afraid.:mad:

North of Watford then?

Dribley

bryanb wrote: »

North of Watford then?

Yes, but south of Aberdeen

Mr._Pricklepants

Dribley wrote: »

Only falling prices and negative equity where I am. A lot worse to come I'm afraid.:mad:

bryanb wrote: »

North of Watford then?

Yep, Dribley (formerly known as Negative_Equity) lives in some north eastern dump.

PasturesNew

If house prices were miraculously half price overnight.... people would immediately be able to borrow/buy one - and then buy furniture, knick knacks, do DIY, order minor and major works, buy building materials, carpets, soft furnishings, garden furniture.... and once settled in the repayments would be low enough for them to afford to go out for meals, holidays, join activities .... thus stimulating the WHOLE economy.

Dribley

Mr._Pricklepants wrote: »

Yep, Dribley (formerly known as Negative_Equity) lives in some north eastern dump.

You're too rude to be a Mr, but the next five letters seem to sum you up!

homelessskilledworker

PasturesNew wrote: »

If house prices were miraculously half price overnight.... people would immediately be able to borrow/buy one - and then buy furniture, knick knacks, do DIY, order minor and major works, buy building materials, carpets, soft furnishings, garden furniture.... and once settled in the repayments would be low enough for them to afford to go out for meals, holidays, join activities .... thus stimulating the WHOLE economy.

And the pressure forces rents down and halves the £25 Billion Housing benefit bill, or lower prices encourage people to build more creative house where people can LIVE in rather than exist.

We have good food, travel, water, fuel right in this country, if only we could sort out decent affordable housing we could than start concentrating on things that really matter.

If decent housing was taken for granted, if everyone came home after a decent days work to comfort(which is far from impossible) imagine the economy we could then focus on and build.