A generation are being priced in order to keep the value up of their parents assets.

ukcarper

MacMickster wrote: »

It is not moral high ground. If the economy of the country goes down the tubes because too much money is tied up in property then it affects everyone.

If my house dropped there (off a cliff?) then yes I would be bothered, but as for the price - nah!

I suppose it depends on the owners circumstances if the said fall would put them in negative equity I think they would be concerned also if they were hoping to move and the fall took away thier deposit or if they were hoping to downsize.

moneyinmypocket

A HPC isn't going to fix anything - the economy is linked to house prices in that they go up more wealth is generated

MacMickster

moneyinmypocket wrote: »

A HPC isn't going to fix anything - the economy is linked to house prices in that they go up more wealth is generated

Back to school tomorrow? I take it that you're not doing an economics GCSE.

Thrugelmir

Rinoa wrote: »

The usual suspects on here blame bank lending in 2007.

But that year we built 185,000 homes, last year we built 109.000.

What do the bears want, more house building or strict lending criteria. They can't have both.

In 2008 when Lloyds Bank merged with HBOS the enlarged group became the country's 4th largest housebuilder.

May have something to do with the decline in numbers.

MacMickster

ukcarper wrote: »

I suppose it depends on the owners circumstances if the said fall would put them in negative equity I think they would be concerned also if they were hoping to move and the fall took away thier deposit or if they were hoping to downsize.

True, but for those not in negative equity and who are looking to upsize it would decrease the differential.

There are winners and losers if house prices increase, winners and losers if they stagnate and both winners and losers if they fall (but in the latter scenario I see rather more winners and less losers).

ukcarper

MacMickster wrote: »

True, but for those not in negative equity and who are looking to upsize it would decrease the differential.

There are winners and losers if house prices increase, winners and losers if they stagnate and both winners and losers if they fall (but in the latter scenario I see rather more winners and less losers).

I personally see stagnation and real time falls as the best option a crash would cause to many problems.

ess0two

MacMickster wrote: »

Most homeowners really couldn't give a damn if the value of their home falls, because they bought it as a home (get the point yet?) and not as an investment. They will continue to live in it whatever its "value".

The reason that many want to see property prices fall is for the sake of their children and the economy in general.

I know that some will say they want to see property values increase so that they leave more to their children, but on average the "children" will be in their 50s or 60s before they inherit the family pile, and I would prefer my children to be able to buy rather earlier than that.

If you've got a LTV of 40% many wont care,try a home owner with an 85% LTV.

moneyinmypocket

MacMickster wrote: »

Back to school tomorrow? I take it that you're not doing an economics GCSE.

Ha attacking the person personally instead of debating is a sure way to show you have lost the debate

MacMickster

moneyinmypocket wrote: »

Ha attacking the person personally instead of debating is a sure way to show you have lost the debate

Really? I think that I read that once in the Beano.

Eellogofusciouhipoppokunu

"Housing is a public good, and that is how public policy must treat it."

This is so true, but unfortunately people seem to get mixed up with the idea of having a roof over their head and owning a roof over their head. One is a necessity and the other isn't. Perhaps if this country wasn't so addicted to the idea of home ownership, we wouldn't have an underclass of people priced out of the ownership market and getting increasingly frustrated and bitter. My hope is one day that people will see through the illusion and realise that there is more to life than sinking a substantial amount of wealth (which represents years of hard graft and sacrifice) into a pile of bricks. I'm not holding my breath.