Evening Standard.. house prices could fall 50%

makeyourdaddyproud

As wymondom says, and imo, so long as there are people prepared to pay £££, then there will be no crash. Now if there was a sudden burst of housebuilding like there was just after WW2, then yes, prices will drop.

There is good truth to the saying "An englishman's home is his castle". People will aspire to buy whether or not lenders restrict loans.

mr_fishbulb

makeyourdaddyproud wrote: »

There is good truth to the saying "An englishman's home is his castle".

I thought that had changed to "An Englishman's home is his pension"

Tommygun2000

makeyourdaddyproud wrote: »

As wymondom says, and imo, so long as there are people prepared to pay £££, then there will be no crash. Now if there was a sudden burst of housebuilding like there was just after WW2, then yes, prices will drop.

There is good truth to the saying "An englishman's home is his castle". People will aspire to buy whether or not lenders restrict loans.

There are a handful of reasons why property will go up from here, as the perma prop bulls keep spurting over and over, but the handful of reasons why property will continue to fall are far more likely.

That one you mentioned about housebuilding is not very high on the list for further falls. Inflation forcing up interest rates and in turn number of repossessions as the global financial crisis worsens is higher up the list.

Tommygun2000

mr_fishbulb wrote: »

I thought that had changed to "An Englishman's home is his pension"

Hope not, or lots of pensioners will be gravely disappointed when benefits keep getting cut every year and people can't afford to pay rents.

If people in Europe thought property was a good pension that must be why people are jumping from the rooftops because of the GFC?

makeyourdaddyproud

That one you mentioned about housebuilding is not very high on the list for further falls. Inflation forcing up interest rates and in turn number of repossessions as the global financial crisis worsens is higher up the list.

Houses are unique assets in the fact we all need roofs over our head. Rest assure if anyone of those reasons cited crystallises, your house will only fall in ratio with everyone elses.

In any case, we had a recent crisis including a banking run. Houses didn't crash then did they.

You are also forgetting the Eurozone in which we are forced to prop up ailing economies (thus preventing their property crashes), which huge amounts of cash.

No house price crash will occur anytime soon.

Also, there are still very rich people around.

Tommygun2000

makeyourdaddyproud wrote: »

Houses are unique assets in the fact we all need roofs over our head. Rest assure if anyone of those reasons cited crystallises, your house will only fall in ratio with everyone elses.

In any case, we had a recent crisis including a banking run. Houses didn't crash then did they.

You are also forgetting the Eurozone in which we are forced to prop up ailing economies (thus preventing their property crashes), which huge amounts of cash.

No house price crash will occur anytime soon.

Also, there are still very rich people around.

Er am I missing something here, there have been almighty house price crashes in Europe. Now property can be bought for less than building material costs in many places.

The banking crisis is only just beginning. All that was done to extend and pretend has just put the problems into the future but made them much worse.

makeyourdaddyproud

Well, I certainly must have been sleeping. If we are talking about any period between 2006 - 2010, no house in this area has seen falls of the magnitude your purporting. Prophecies of doom and gloom always abound.

Tommygun2000

makeyourdaddyproud wrote: »

Well, I certainly must have been sleeping. If we are talking about any period between 2006 - 2010, no house in this area has seen falls of the magnitude your purporting. Prophecies of doom and gloom always abound.

Well you must have been sleeping. In 2007 average UK house price was over 200K, now its fallen to in the 150's and still falling. This is the nominal 'price' if you take into account real inflation i.e the value it has fallen its around 30% and will be around 50% real term crash in a couple of years if things continue the way they are heading.

makeyourdaddyproud

Well, it certainly doesn't look like that here: 3bed terrace 2007 170k, 2012, 200k (and sold). 4bed house 2007 265k, 2012 317k (and sold). Where are you, Teeside?

Though I do agree in some areas house are not even selling.

makeyourdaddyproud

In addition, Bellway Homes, new development, 15 entry level 3 bed houses (no garage), 230 k (11 sold), even though pokey as hell.