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Debate House Prices


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Over on hpc.co.uk they are weakening, they are buying!

13567

Comments

  • coastline
    coastline Posts: 1,662 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    HAMISH_MCTAVISH wrote: »
    It's not just London and the south east though. I live about as far away from London as you can get in the uk, and prices here have already exceeded their previous peak.

    There must be a good reason for this surely...full employment ??
  • coastline
    coastline Posts: 1,662 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    HAMISH_MCTAVISH wrote: »
    Not really. What its saying is that young people on the whole just can't get mortgages, thanks to mortgage rationing remaining endemic.

    Yes...I understand the deposit bit....but these homes are down by a third in price and interest rates are as low they've ever been...
    I honestly believe theres more to it than just the deposit...the quality of jobs is a big factor..
  • HAMISH_MCTAVISH
    HAMISH_MCTAVISH Posts: 28,592 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    coastline wrote: »
    There must be a good reason for this surely...full employment ??

    No our unemployment has risen markedly since 2007, although it remains lower than the national average as it started out lower than the average, it has risen by a similar percentage.

    But it's true to say our local economy has been less blighted by the recession than many other areas, and that we have a higher percentage of people who can easily save deposits than most areas, not to mention the well known tendency of tight fisted Scotsmen refusing to sell houses at a loss....;)
    “The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.

    Belief in myths allows the comfort of opinion without the discomfort of thought.”
    -- President John F. Kennedy”
  • HAMISH_MCTAVISH
    HAMISH_MCTAVISH Posts: 28,592 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    edited 23 October 2012 at 11:52AM
    coastline wrote: »
    Yes...I understand the deposit bit....but these homes are down by a third in price and interest rates are as low they've ever been...
    I honestly believe theres more to it than just the deposit...the quality of jobs is a big factor..

    Not really.

    The biggest factor by far is the dysfunctional and broken mortgage market which is artificially throttling demand.

    Remember, 95% of the people who had full time work before the recession still have full time work today. That isn't the problem. And renting is more expensive than buying in 90% of the uk now, so obviously affordability isn't the problem either.

    However with rent having soared to new record highs thanks to the housing shortage and an increase in demand for rented because the young cant get mortgages, it's almost impossible for most young people to save the absurdly high deposit percentages being asked for by the banks today.

    Generation rent are trapped.

    And will remain so until lending increases.
    “The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.

    Belief in myths allows the comfort of opinion without the discomfort of thought.”
    -- President John F. Kennedy”
  • ruggedtoast
    ruggedtoast Posts: 9,819 Forumite
    If there were more housing supply then rents would be lower and people would be able to save more and get a mortgage that would be smaller anyway.

    Offering people giant mortgages without a deposit rather than giant mortgages with a deposit isn't going to do any longlasting good.

    Boomers need to see devaluation and they need to see it now.
  • HAMISH_MCTAVISH
    HAMISH_MCTAVISH Posts: 28,592 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    ruggedtoast wrote: »
    If there were more housing supply then rents would be lower and people would be able to save more and get a mortgage that would be smaller anyway..

    But there won't be more housing supply until much more lending returns to the market, so people can get mortgages at historically normal, prudent and sensible deposit percentages.

    Builders won't build what they can't sell...
    “The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.

    Belief in myths allows the comfort of opinion without the discomfort of thought.”
    -- President John F. Kennedy”
  • ruggedtoast
    ruggedtoast Posts: 9,819 Forumite
    HAMISH_MCTAVISH wrote: »
    But there won't be more housing supply until much more lending returns to the market, so people can get mortgages at historically normal, prudent and sensible deposit percentages.

    Builders won't build what they can't sell...

    It shouldn't be up to private builders. Housing is a fundamental need in a modern country, like sanitation and roads and phone lines. The government needs to get building in response to a housing shortage, like happens in every other country in the world.

    Instead ours exacerbates the problem to buy votes.

    2002-09-25%20Sept%20housing%20bubble%20real%20estate%20boom%20520.jpg
  • Percy1983
    Percy1983 Posts: 5,244 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    If I wanted to know what was happening on HPC I would check.
    Have my first business premises (+4th business) 01/11/2017
    Quit day job to run 3 businesses 08/02/2017
    Started third business 25/06/2016
    Son born 13/09/2015
    Started a second business 03/08/2013
    Officially the owner of my own business since 13/01/2012
  • ruggedtoast
    ruggedtoast Posts: 9,819 Forumite
    Percy1983 wrote: »
    If I wanted to know what was happening on HPC I would check.

    Cool story bro.
  • nollag2006
    nollag2006 Posts: 2,638 Forumite
    ruggedtoast wrote: »
    http://www.housepricecrash.co.uk/forum/index.php?showtopic=184005



    Will there ever be an HPC? Who knows.


    There was one, early 2008 to 2009.

    Next one due in 10 -15 years, according to economic cycles.

    Or if you read MoneyWeek - the crash is due at precisely 3:15 on Tuesday

    :rotfl:
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