House price crash?

kingkano

I think they were being sarcastic.....

Id agree if only it were true that 'people regard property as a home first'. I think its been quoted that roughly 15% of owned property is now BTL? We dont know what these new landlords will do at the sign of any weakening of the market. If they panic and all rush to sell this could CAUSE a crash of sorts.

But then we dont know how the rest of the population will respond to BTLers rushing to offload the asset either.....

Hapless_2

In a village called Appledore in Devon 75% of the homes are second homes. Empty in the winter and only used for weekends during the summer. People born and bred in the village cannot buy a garage there let alone a house (garages £15,000). It's lost it's post office due to lack of use during the winter months, nearly lost it's main employer. It's ok people saying "get a better job then you can afford a house", the South West is notorious for bad wages and why the heck should they just because some jumped up second home owner wants a home in a quaint village.
They recently built 5 detatched 4 bedroomed homes there, prices were £425,000 and only one is lived in all year round with a family in, the others are owned by couples who visit on weekends and then go away again without even entering a local shop.
In the meanwhile people who actually live local can barely keep a roof over their heads.
As for renting, 3 bedroomed family house in Appledore £600pm, no DSS, no children (It's a family house!!!!), no pets, professional couples only. Oh yeah and it's an ex-council house too.

horace_2

Hapless don`t you apportion any blame to Mrs T for offering local authority properties for sale, without replacement or is it all the fault of second home owners?

h

vinno65

Or greedy locals cashing in and selling to second home buyers in the first place!

Vinno

It's the free market baby!

Guy_Montag

vinno65 wrote: »

Or greedy locals cashing in and selling to second home buyers in the first place!

Vinno

It's the free market baby!

But at the risk of sounding like a broken record, it's not a free market or Joe Local would be able to buy a small plot & build his own place. As long as we have some restrictions we might as well have others.

To people priced out in the South West, I really wouldn't suggest finding an empty second home at the beginning of the winter & squatting. It's certainly not something I would do, but if I did I'd check this out first

http://www.squatter.org.uk/

Hapless_2

horace wrote: »

Hapless don`t you apportion any blame to Mrs T for offering local authority properties for sale, without replacement or is it all the fault of second home owners?

h

*I won't blame anyone who hasn't been in power for over 10 yrs, especially when the current government could have scrapped the rights given in the previous government especially as they seemed to have scrapped every other right we have. Besides that I don't think this is the place for political debate.*

Would be second home/holiday home owners are not exactly going to 'fess up to sellers are they?
Besides, what's wrong with buying a static caravan as a holiday home?

My personal thoughts would be
Offered to Locals only and those moving to work in the immediate local area for first 6 months of sale.
Then area widened to regionwide (i.e. south west, not just specific county etc)for next 6 months of sale.
Then finally goes nationwide after 12 months on market.

Hapless_2

I have no problem with buy to let per se. Just some of the dumb restrictions they have in place and the phenomenal rents they charge whether the home was ex-council or not. The refusal to accept housing benefit even when paid as a top up to rent, the refusal of allowing children in large houses, the refusal of allowing pets when the house has a huge garden etc.
I used the example of the ex-council house to illustrate that if an ex-council place was going for £600 a month, how much do you think a non-ex-council place was going to be?

spurs_nut

Ad wrote: »

Edit Not worth a response.

Sour grapes.........

:rotfl: :rotfl: :rotfl:

fatpigeon_2

In response the to original question as to whether house prices will decrease, I believe it to be inevitable.
We are nearing the top of the cycle but are by no means at the peak. I say this because inflation will be heading down towards 2% by the end of the year and after a likely .25 base rate hike on Thursday (0.5 is far too big a leap - try to bear in mind that the Aug 06 hike still hasn't feed through the system completely) and another .25 before the end of the year the figures will look as if the BoE MPC will have succeeded in targeting inflation.
IMO a fall in prices will only be on the horizon mid 2009 when all the increases will have fed through.
Secondly, I'd like to remind people again that when house prices drop so does available credit. Arguing that there won't be a fall because then all the people who can't afford to buy now will jump in and buy does not take into consideration where they are obtaining the money to do so. Lenders tighten credit in a crash. This means that there won't be a ready supply of buyers to mop up any leftover houses.

Conrad

sikejsudjek wrote: »

Its classic bubble economics at work. The sheeple buy at the top and sell at the bottom.

The 'least knowledgeable' finally learn the lessons of the most knowledgeable and at the end of a boom scramble to get in for fear of being left out.

At this point the most knowledgeable bow out, happy they have taken decent enough returns and seek out new markets into which the least knowledgeable will follow 10 years hence.

In 1995 99% of people thought B2L was a mysterious odd investment. Now its become 'normalised' and the least educated use phrases such as

"property doubles in value every 5 years, which means its a sure bet investment"


THE SHEEPLE DONT STOP TO CONSIDER WHY IT IS ALL THE LONDON INVESTMENT BANKS ARE'NT PILING INTO B2L?

One call centre operative working for a property investment company said this to me "I teach people to become property millionaires'

I think he propbably earns about £15k pa, but he teaches people to bcome millionaires.

Silly ole me, I thought it took hard work and deep thought