Outside prime London, house prices are falling back to earth

Fella

http://www.cityam.com/latest-news/allister-heath/outside-prime-london-house-prices-are-falling-back-earth

Excerpt:

"The inflation-adjusted figures reveal that the peak to trough real terms decline has now reached around 24.2 per cent. Average house prices are back in real terms to levels last seen in the first quarter of 2003. In other words, all of the gains incurred over the past nine years have been completely wiped out. For most people in Britain, housing has been a poor investment over the past decade.

The figures provided by Halifax are even more extreme. These suggest that the real terms slump in average UK house prices has now reached a remarkable 33 per cent (and 19 per cent in nominal terms). Andrew Lilico of Europe Economics calculates that the real-terms peak-to-trough collapse in the 1990s was 33.9 per cent, so that could easily be surpassed next month."

michaels

So in other words we are achieving a rebalancing a lot less painfully than if it had all happened as a quick nominal collapse - keep printing money and 'missing' that inflation target I say.

skivenov

I can vouch for this - I couldn't afford a house in 2003 either!

The-Joker

michaels wrote: »

So in other words we are achieving a rebalancing a lot less painfully than if it had all happened as a quick nominal collapse - keep printing money and 'missing' that inflation target I say.

Slow is worse though, look at the USA and N,Ireland, if the UK fell 50% as well we could now have a real recovery and start again.

The way it is its just prolonging the pain.

The-Joker

The-Smoker wrote: »

Slow is worse though, look at the USA and N,Ireland, if the UK fell 50% as well we could now have a real recovery and start again.

The way it is its just prolonging the pain.

N Ireland and indeed all Ireland is still falling

ukcarper

The-Joker wrote: »

N Ireland and indeed all Ireland is still falling

Talking to yourself you know what they say about that.

IveSeenTheLight

Fella wrote: »

For most people in Britain, housing has been a poor investment over the past decade.

Really..........

What then has been the cost to non homeowners in the same 10 year period?

Rent costs are proven to be far greater than mortgage costs, let alone interest, so what has been the cost of not investing?

The-Joker

IveSeenTheLight wrote: »

Really..........

What then has been the cost to non homeowners in the same 10 year period?

Rent costs are proven to be far greater than mortgage costs, let alone interest, so what has been the cost of not investing?

What you forget is high housing benefit have pushed up rents so you argument is redundant because the government is paying most low income families rents.

ukcarper

The-Joker wrote: »

What you forget is high housing benefit have pushed up rents so you argument is redundant because the government is paying most low income families rents.

What has that got to do with anything.

The-Joker

ukcarper wrote: »

What has that got to do with anything.

Everything actually everyone getting housing benefit do not want to buy so while it lasts rents will stay high. But h
Ousting benefit will be cut and rents will fall.

ukcarper

The point is you said over the past decade housing has been a poor investment but how does that compare to renting over the same period.