FSA warn Banks Housing could "dip" 20%

Flash_2

alared wrote: »

I feel it`s the BTL brigade that are keeping prices pretty high and I can understand their reasons for buying more than one property

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It's just making so hard for the genuine people that want to buy a place to make it their home

jaype

The government needs to do more to encourage people to invest in other areas rather than pin all their hopes on housing. It's storing up loads of trouble.
1. If there is a fall in prices, people buying BTL for their pension will be stuffed
2. If even quarter of a generation is priced out, there will be hell to pay when they hit retirement and the ever decreasing pool of people of tax-paying age are expected to cough up to cover their rent as well as their healthcare, state pension and so forth.

Something will cool the market - it's just a case of guessing when it will come. I would like (and can afford at a big stretch) to buy, but its like waiting for a bus. I know something is wrong and that the bus is overdue, but do I keep waiting, or give up and walk? if I do, you can guarantee the bus will zoom past as soon as I'm 20 metres from the stop and I'll be gutted.

Alan_M_2

ukbondraider wrote: »

Even if prices drop 20%, at these levels arent they still too expensive for you two especially considering that prices have gone up 10% since the start of the year not to mention approx 50000000% since all the whinging and moaning began on these forums?

Even at these levels I see alot of people buying houses that I wouldnt have thought would be able to buy. I vewed a couple of £550K+ newish houses the other day and they were owned by a landscape gardener, someone who appeared to work for royal mail and someone that looked liked a handyman.

Maybe prices still have some way more to go (upwards) before the true equilibrium is met

A good friend of mine is a Plumber and He lives in a house that's approaching £800,000.

Without the parameters of how old he is, what mortgage he has or when he first bought property, was the property inherited, was money inherited, did he win the lottery...... the above statement is arbitrary.

None of it bears any relevance to affordability now.

Romani_Ite_Domum

mchu6am4 wrote: »

Dont know the answers to the questions, but as long as the economy is doing well - i.e. people have jobs then houses will keep selling and that means little, if any, drop in prices.

Good point only the economy has been built on rising house prices and debt.
It is not doing so well. Unemployment rising, CPI nowhere near the average 2% it should be. Debt = £1 trillion. The economy could unravel the same as it has spiraled. 20% drop in house prices is optimistic. 50% could be closer to the figure.

I own a house and I don't think it would be a bad thing. The recession that follows a house crash however would.

Melissa177

mrstinchcombe wrote: »

The only reason I dont like them is that they get my hopes up

I take your point tho, my bad!

I can't understand people who want house prices to crash because they want to be able to afford a home. A crash indicates a recession, or indicates something is seriously wrong with the economy - do you really want that?

Guy_Montag

Melissa177 wrote: »

I can't understand people who want house prices to crash because they want to be able to afford a home. A crash indicates a recession, or indicates something is seriously wrong with the economy - do you really want that?

Are you saying house prices tripling in ten years doesn't indicate a problenm with the economy? If it was wages/bread/electricity/fuel going up like that people would be shrieking, but since it's houses people are completely sanguine.

Recessions re naturl part of the economi cycle & impossible to avoid forever - they help redistribute jobs, keep wages down & make people more productive.

Finally in a recession us renters have a distinct advantage over home-owners, we don't have a home holding us to a particular area - we can go where the work is, whether that's moving round the UK or off to Europe.

So I say roll on the crash & roll on the recession - far too many damned "property developers" & estate agents in this country anyway.

Melissa177

Guy_Montag wrote: »

Are you saying house prices tripling in ten years doesn't indicate a problenm with the economy? If it was wages/bread/electricity/fuel going up like that people would be shrieking, but since it's houses people are completely sanguine.
.

Oh, I definitely agree with that - I think the problem with our economy is that nearly everyone including HM Treasury PLC is jacked up the eyeballs in debt.

HOWEVER, I do think there is something perverse about wanting the economy to go t*ts up so that house prices crash.


Also, I'm not sure renters do have an advantage from a work mobility point of view - I can sell my home (or rent it out) if I wish to, and go and live elsewhere quite quickly, but if you're renting and tied into an annual/six monthly contract, it's not so easy.

Romani_Ite_Domum

Melissa177 wrote: »

I can't understand people who want house prices to crash because they want to be able to afford a home. A crash indicates a recession, or indicates something is seriously wrong with the economy - do you really want that?

Melissa, some people may want a crash as that is the only way they can see of ever owning a home. This may not be the case for some of these people as the following recession would mean loss of jobs for some and credit tightening during a recession.

I think more people just don't see rampant HPI as being a good thing and would like this madness to stop. The property market should have corrected in 2005 but the Gov wanted to keep the economy booming. The problem is that unless it keeps booming, it goes into reverse. People who vent their concerns on this site are not necessarily doom merchants. They are just worried the way the Country is heading.

I own a house, I have children. I am concerned.

epz_2

Melissa177 wrote: »

Also, I'm not sure renters do have an advantage from a work mobility point of view - I can sell my home (or rent it out) if I wish to, and go and live elsewhere quite quickly, but if you're renting and tied into an annual/six monthly contract, it's not so easy.

sure it is, if you rent and have to go early you can just move and lose the deposit, you might get threatend with a law suit for the rest but i guess plenty of people would take their chances.

one other advantage to renting in an economy is if you lose your job you can stop paying rent and it takes months to evict you.

as a home owner you may find it dificult to rent out if your area isnt desirable due to lack of jobs or you may need to sell at a serious discount and you need to pay £1000s in fees.

Melissa177

epz wrote: »

sure it is, if you rent and have to go early you can just move and lose the deposit, you might get threatend with a law suit for the rest but i guess plenty of people would take their chances.

one other advantage to renting in an economy is if you lose your job you can stop paying rent and it takes months to evict you.

But neither of those things are ethical though, are they?

I'm a bit old fashioned - if I've signed a contract, I stick with it!