Mortgage help will release a surge of pent up demand.....

shortchanged_2

ukcarper wrote: »

It obviously is to some people but so are high deposits in fact I would think they are a barrier to more people.

But carper they go hand in hand. Lower prices would actually lead to a lower deposit requirement also.

John_Pierpoint

The problem is the price of land, not the price of bricks and mortar.

You can build you own house remarkably cheaply (nothing wasted on marketing costs) especially if you are prepared to use second hand materials.

That is what I did; so did a group of east Londoners on the dole in Margaret Thatcher's Britain.
When slum landlords are not allowed to let "F" & "G" Energy Performance Certificate houses in 2018, there will be some more "House for £1" offers, from local authorities.

wotsthat

shortchanged wrote: »

Has it occurred to you that some of these areas outside of London are on the bones of their ar**s economically.

We're getting there shortchanged.

You asked the question "So do you actually believe if house builders cut their prices by 50% tomorrow, they wouldn't sell?"

Well given I've posted an example where prices fell by around 17% and transactions fell by around 60% the answer to your question is..... not necessarily.

shortchanged_2

wotsthat wrote: »

We're getting there shortchanged.

You asked the question "So do you actually believe if house builders cut their prices by 50% tomorrow, they wouldn't sell?"

Well given I've posted an example where prices fell by around 17% and transactions fell by around 60% the answer to your question is..... not necessarily.

And the answer to your example is that house prices are obviously still too expensive in that area. It's not complicated wotsthat.

wotsthat

CLAPTON wrote: »

or maybe low numbers of willing buyers leads to low prices?
or a bit of both

ps... 'willing buyers' means people wanting to buy and having sufficient deposit and being able to get a suitable mortgage

There seems to be a theory that there is easy access to mortgages but buyers won't borrow 'simply' because prices are too high. It's not my theory because it tests credulity to think that banks are really really desperate to lend but are being turned down buy striking buyers.

Aside from that craziness, yes, low numbers of willing buyers will generally result in a downwards price pressure.

ukcarper

shortchanged wrote: »

But carper they go hand in hand. Lower prices would actually lead to a lower deposit requirement also.

True but a 10% fall would reduce a 20% deposit on a £160k house from £32k to £28.8k which won't help many people.

wotsthat

shortchanged wrote: »

And the answer to your example is that house prices are obviously still too expensive in that area. It's not complicated wotsthat.

...but it wasn't obvious to the nearly three times as many people that bought when they were 20% more expensive than now.

It doesn't matter whether someone wants prices to fall, rise or stagnate - most of them recognise that buying a house IS more complicated than the price tag.

shortchanged_2

ukcarper wrote: »

True but a 10% fall would reduce a 20% deposit on a £160k house from £32k to £28.8k which won't help many people.

Or alternatively a 20% fall (which seems to be a figure being mooted about) would be a figure of £25600.

Remember carper this is MSE website and every little helps.

shortchanged_2

wotsthat wrote: »

...but it wasn't obvious to the nearly three times as many people that bought when they were 20% more expensive than now.

It doesn't matter whether someone wants prices to fall, rise or stagnate - most of them recognise that buying a house IS more complicated than the price tag.

Most people got sold the dream of ever rising house prices in the noughties and how we could just create thousands of pounds of money from free air from doing literally nothing (apart from a sprinkling of magnolia and a few twigs in a pot in a few cases).

Now reality has set in since the credit crunch and more and more people are realising that these were all just fantasy figures.

grizzly1911

wotsthat wrote: »

There seems to be a theory that there is easy access to mortgages but buyers won't borrow 'simply' because prices are too high. It's not my theory because it tests credulity to think that banks are really really desperate to lend but are being turned down buy striking buyers.

Aside from that craziness, yes, low numbers of willing buyers will generally result in a downwards price pressure.

I am sure there isn't just one simple reason. Depending on location various factors contribute in differing proportions.

Whilst lenders aren't falling over themselves to lend like they were at peak it doesn't mean they won't lend to good quality applicants. Which scenario is the correct one? Different people will have different views.

I am sure there are many willing purchasers who just don't stack up for all sorts of reasons. I am also sure there are a good number that would be happy to accept reasonably priced satisfactory rental accommodation.

There is a shortage in affordable housing and that is the problem.